Private equity investment in Indian real estate falls 4%

18 Oct 2024 CW Team

Private equity investments in the Indian real estate sector decreased by 4% to $2.3 billion in the first half of the fiscal year, primarily due to a decline in funding for office assets, according to Anarock.

The consulting firm reported that the number of deals dropped to 17 during April-September, down from 24 in the same period last year. Shobhit Agarwal, MD & CEO of Anarock Capital, noted that foreign investors, who primarily drive office investments, have pulled back due to global issues such as geopolitical tensions and rising interest rates.

Despite the decline, the overall dominance of foreign investors in the Indian real estate market remains stable, bolstered by significant investments like the ADIA/KKR partnership in Reliance Retail's warehousing assets.

Historical data shows a fluctuating trend in private equity investments: $1.2 billion in H1 2020-21, $2 billion in H1 2021-22, $2.8 billion in H1 2022-23, $2.4 billion in April-September 2023-24, and now $2.3 billion in H1 2024-25.

Interestingly, the average deal size has increased by 23% year-on-year, largely driven by the Reliance-ADIA/KKR warehousing deal, which accounted for 67% of total investments in the first half of FY25.

Foreign investors comprised 87% of the total private equity investments during this period. The industrial and logistics sectors attracted 67% of total investments, significantly outperforming both the office and residential sectors, which each garnered 17%. While office sector investments plummeted by 79%, the industrial and logistics sectors saw a remarkable 378% increase compared to the previous financial year.

Infrastructure Transport

12 Mar 2026

Kavach 4.0 Commissioned on Delhi–Mumbai and Delhi–Howrah

"Kavach version four has been commissioned on 1,452 route km, covering the high density Delhi–Mumbai and Delhi–Howrah corridors. The rollout included laying 8,570 km of optical fibre, installation of 1,100 telecom towers, deployment of trackside equipment over 6,776 RKm and establishment of 767 station data centres. Trackside implementation has been taken up on 24,427 RKm covering Golden Quadrilateral, Golden Diagonal and High Density Network sections. The programme aims to strengthen signalling and train protection on key routes.Kavach is an indigenously developed automatic train protecti..

Railways Advance Kalyan–Murbad Line And Mumbai Capacity Expansion

"Indian Railways is advancing multiple rail infrastructure projects in Maharashtra, including the sanctioned Kalyan–Murbad new line and sizable investments under the Mumbai Urban Transport Project and the Mumbai–Ahmedabad High Speed Rail project. The Kalyan–Murbad 28 km new line has been sanctioned at Rs 8.36 billion (bn) on a 50:50 cost-sharing basis with the Government of Maharashtra and has been declared a Special Railway Project for land acquisition; proposals covering 214 hectares are at various stages of acquisition. Budgetary outlay for projects falling fully or partly in Maharash..

Parliamentary Panel Flags Funding Gaps in Heavy Industries

"The Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha) presented its 332nd report on the Demands for Grants 2026-27 of the Ministry of Heavy Industries (MHI). Figures converted from crore and lakh are expressed in million (mn). The Budget Estimates 2026-27 for the Ministry stand at Rs 79,399 mn against a projected requirement of Rs 94,843.2 mn, a shortfall of about 16 per cent, with revenue at Rs 79,370.8 mn and capital compressed to Rs 28.2 mn from Rs 5,020 mn.The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and calle..