+
Private Equity deal activity in Indian Real Estate declines in Q1 FY24
Real Estate

Private Equity deal activity in Indian Real Estate declines in Q1 FY24

During the first quarter of the current financial year (Q1 FY 2024), reported private equity (PE) deal activity in India, experienced a slight decline compared to the same period the previous year. In Q1 FY 2024, PE investments in real estate amounted to $1.9 billion, down from $2 billion in Q1 FY 2023.

ANAROCK Capital's report FLUX for Q1 FY24 revealed that the overall deal numbers were boosted by a significant transaction totalling $1.4 billion, namely the Brookfield India RE Trust REIT - GIC transaction. This particular deal accounted for approximately 75 per cent of the total deal activity during the period.

Shobhit Agarwal, MD and CEO of ANAROCK Capital, explained that excluding this deal, private equity activity remained subdued due to a high-interest rate environment and global uncertainties. Agarwal further mentioned that foreign investors tend to focus on equity investments in office assets, which already tilts the scale in favour of office assets in Indian real estate. The single large deal between the consortium of GIC and Brookfield REIT with Brookfield AMC further skewed the mix during the quarter.

The average ticket size for deals in Q1 FY24 notably increased to $192 million from $100 million in FY 2023. This increase was primarily attributed to the significant transaction mentioned earlier. The report states that the global economic environment continues to be uncertain, particularly due to elevated interest rates. Consequently, excluding the Brookfield-GIC transaction, deal volumes remained subdued in the quarter.

In terms of asset class wise funding, the commercial real estate sector experienced significant activity in Q1 FY24, mainly driven by the Brookfield-GIC transaction. The commercial real estate sector received 90 per cent of the funding in Q1 FY 2024, compared to 68 per cent in Q1 FY 2023. Meanwhile, residential real estate received 6 per cent of the funding, while industrial and logistics received 4 per cent.

Foreign investors continued to dominate investment activity in Q1 FY24, much like in Q1 FY23. They accounted for 94 per cent of the activity during this period, indicating their sustained interest and participation in the Indian market. In Q1 FY 2023, foreign investors had contributed 90 per cent of the activity.

Gagan Randev, Executive Director of India Sotheby's International Realty, attributed the slight decline in PE investment during the April-June quarter to the temporary slowdown and disruptions in the global economy. The rise in interest rates had severely affected investments in office assets in North America, resulting in market upheaval there. However, Randev expressed optimism that this phase would be transient, anticipating an increase in PE investment in the upcoming quarter.

During the first quarter of the current financial year (Q1 FY 2024), reported private equity (PE) deal activity in India, experienced a slight decline compared to the same period the previous year. In Q1 FY 2024, PE investments in real estate amounted to $1.9 billion, down from $2 billion in Q1 FY 2023.ANAROCK Capital's report FLUX for Q1 FY24 revealed that the overall deal numbers were boosted by a significant transaction totalling $1.4 billion, namely the Brookfield India RE Trust REIT - GIC transaction. This particular deal accounted for approximately 75 per cent of the total deal activity during the period.Shobhit Agarwal, MD and CEO of ANAROCK Capital, explained that excluding this deal, private equity activity remained subdued due to a high-interest rate environment and global uncertainties. Agarwal further mentioned that foreign investors tend to focus on equity investments in office assets, which already tilts the scale in favour of office assets in Indian real estate. The single large deal between the consortium of GIC and Brookfield REIT with Brookfield AMC further skewed the mix during the quarter.The average ticket size for deals in Q1 FY24 notably increased to $192 million from $100 million in FY 2023. This increase was primarily attributed to the significant transaction mentioned earlier. The report states that the global economic environment continues to be uncertain, particularly due to elevated interest rates. Consequently, excluding the Brookfield-GIC transaction, deal volumes remained subdued in the quarter.In terms of asset class wise funding, the commercial real estate sector experienced significant activity in Q1 FY24, mainly driven by the Brookfield-GIC transaction. The commercial real estate sector received 90 per cent of the funding in Q1 FY 2024, compared to 68 per cent in Q1 FY 2023. Meanwhile, residential real estate received 6 per cent of the funding, while industrial and logistics received 4 per cent.Foreign investors continued to dominate investment activity in Q1 FY24, much like in Q1 FY23. They accounted for 94 per cent of the activity during this period, indicating their sustained interest and participation in the Indian market. In Q1 FY 2023, foreign investors had contributed 90 per cent of the activity.Gagan Randev, Executive Director of India Sotheby's International Realty, attributed the slight decline in PE investment during the April-June quarter to the temporary slowdown and disruptions in the global economy. The rise in interest rates had severely affected investments in office assets in North America, resulting in market upheaval there. However, Randev expressed optimism that this phase would be transient, anticipating an increase in PE investment in the upcoming quarter.

Next Story
Infrastructure Urban

GRM Overseas Reports Q1 FY26 Results; Strengthens Global & Domestic Presence

GRM Overseas has announced its unaudited financial results for the quarter ended 30 June 2025. The company reported a positive performance in terms of margins and profitability, despite topline pressures from global geopolitical challenges.Atul Garg, Managing Director, said:"We have maintained healthy margins and profitability while navigating short-term headwinds. Our focus remains on expanding our product portfolio, enhancing brand visibility, and deepening our distribution network. Internationally, we continue to hold a strong position in the Basmati rice export market, particularly in the ..

Next Story
Infrastructure Urban

Zuari Industries Posts Q1 FY26 Revenue Growth; PAT Turns Positive

Zuari Industries has announced its audited financial results for the quarter ended 30 June 2025.On a standalone basis, the company reported Revenue from Operations of Rs 2.10 billion and Operating EBITDA of Rs 220.4 million. Standalone Profit Before Tax (PBT), before exceptional items, stood at Rs 90 million.On a consolidated basis, Revenue rose 10.5 per cent year-on-year to Rs 2.67 billion, while Profit After Tax (PAT) stood at Rs 50 million compared to a loss of Rs 330.6 million in Q1 FY25.Segment HighlightsSugar, Power & Ethanol: Operations were impacted by an early mill closure due to ..

Next Story
Infrastructure Urban

Karnataka Bank Reports Q1 FY26 Net Profit of Rs 2.92 Bn

Karnataka Bank has announced a net profit of Rs 2.92 billion for the first quarter of FY26, compared to Rs 4 billion in Q1 FY25. The results were approved at the Board of Directors meeting held on 13 August 2025 at the Bank’s headquarters in Mangaluru.Asset Quality & Capital AdequacyGross NPA: 3.46 per cent, improved from 3.54 per cent in Q1 FY25.Net NPA: 1.44 per cent, down from 1.66 per cent in Q1 FY25.Capital Adequacy Ratio (CAR): 20.46 per cent, up from 17.64 per cent in Q1 FY25.Announcing the results, Raghavendra S Bhat, Managing Director & CEO, said:"The Bank has registered a m..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?