PE investment in Indian real estate rise 6% to $2.82 billion
Real Estate

PE investment in Indian real estate rise 6% to $2.82 billion

The private equity deals (PE) investment value increased six per cent to $2.82 billion in the first nine months of FY25, according to Anarock. The growth was despite the decline in PE deals from 30 in 9M FY24 to 24 in 9M FY25. 

Shobhit Agarwal, MD & CEO, ANAROCK Capital said, "The average deal size saw a notable increase of 32.5%, climbing from $88.5 million in April to December FY24 to $117.3 million in the April to December FY25. This jump underscores the impact of large-scale transactions on the market, with the top 10 deals comprising 93% of total PE transactions." 

In the April to December FY25, the industrial and logistics sector captured 62% of total investments, significantly surpassing both the office and residential sectors, which attracted 14% and 15%. In terms of cities, Bengaluru and Hyderabad led the transaction tables with 11% and 10% deal shares. 

Domestic and foreign investors broadly maintained the same funding proportions as the previous years. 

The private equity investment in the residential sector rose to 15%, up from 12% in the same period last year. Commercial real estate markets saw strong leasing, this segment saw muted PE activity due to geopolitical concerns and high interest rates, which impacted valuations. 

The private equity deals (PE) investment value increased six per cent to $2.82 billion in the first nine months of FY25, according to Anarock. The growth was despite the decline in PE deals from 30 in 9M FY24 to 24 in 9M FY25. Shobhit Agarwal, MD & CEO, ANAROCK Capital said, The average deal size saw a notable increase of 32.5%, climbing from $88.5 million in April to December FY24 to $117.3 million in the April to December FY25. This jump underscores the impact of large-scale transactions on the market, with the top 10 deals comprising 93% of total PE transactions. In the April to December FY25, the industrial and logistics sector captured 62% of total investments, significantly surpassing both the office and residential sectors, which attracted 14% and 15%. In terms of cities, Bengaluru and Hyderabad led the transaction tables with 11% and 10% deal shares. Domestic and foreign investors broadly maintained the same funding proportions as the previous years. The private equity investment in the residential sector rose to 15%, up from 12% in the same period last year. Commercial real estate markets saw strong leasing, this segment saw muted PE activity due to geopolitical concerns and high interest rates, which impacted valuations. 

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