Real Estate PE Inflow Dips 3% to $3.7 Billion in FY25: Anarock
Real Estate

Real Estate PE Inflow Dips 3% to $3.7 Billion in FY25: Anarock

Private equity (PE) investments in Indian real estate saw a modest 3% decline in FY25, slipping to USD 3.7 billion, as per data released by Anarock Capital. The drop is largely attributed to a slowdown in funding for office assets, amid global macroeconomic uncertainties and geopolitical tensions.

This marks the fifth consecutive year of declining PE inflows, down from USD 6.4 billion in FY21—a cumulative drop of 43%. Foreign investors continued to dominate the landscape, accounting for 84% of total inflows during the fiscal.

Office properties witnessed the sharpest fall, with investments plummeting from USD 2.2 billion in FY24 to USD 806 million in FY25. Despite strong leasing activity, investor sentiment remains cautious, influenced by elevated interest rates and persistent geopolitical risks.

On a more positive note, the warehousing segment saw a surge in inflows, partly offsetting the decline in residential and office investments. The funding structure also shifted, with hybrid deals forming 42% of total inflows, while equity and debt stood at 37% and 21%, respectively.

Analysts suggest the overall moderation signals a more mature and strategic approach to investment, with a focus on quality, income-generating assets. India's resilient economic trajectory and evolving investor preferences are expected to sustain steady capital deployment in the sector going forward.

Private equity (PE) investments in Indian real estate saw a modest 3% decline in FY25, slipping to USD 3.7 billion, as per data released by Anarock Capital. The drop is largely attributed to a slowdown in funding for office assets, amid global macroeconomic uncertainties and geopolitical tensions. This marks the fifth consecutive year of declining PE inflows, down from USD 6.4 billion in FY21—a cumulative drop of 43%. Foreign investors continued to dominate the landscape, accounting for 84% of total inflows during the fiscal. Office properties witnessed the sharpest fall, with investments plummeting from USD 2.2 billion in FY24 to USD 806 million in FY25. Despite strong leasing activity, investor sentiment remains cautious, influenced by elevated interest rates and persistent geopolitical risks. On a more positive note, the warehousing segment saw a surge in inflows, partly offsetting the decline in residential and office investments. The funding structure also shifted, with hybrid deals forming 42% of total inflows, while equity and debt stood at 37% and 21%, respectively. Analysts suggest the overall moderation signals a more mature and strategic approach to investment, with a focus on quality, income-generating assets. India's resilient economic trajectory and evolving investor preferences are expected to sustain steady capital deployment in the sector going forward.

Next Story
Real Estate

Kolkata’s luxury housing market sees price growth amid mixed trends

A new study by Nklusive reveals that Kolkata’s luxury residential market (Rs 5–10 crore) recorded a 33 per cent year-on-year rise in supply and a 52 per cent increase in sales in calendar year 2024 (CY24). South Kolkata led with 78 per cent of the segment’s supply. The average price rose by 6 per cent—from Rs 17,519 to Rs 18,600 per sq ft—while unsold inventory grew by 15 per cent. Monthly absorption improved from 2 to 3 units.In contrast, the ultra-luxury segment (Rs 10 crore and above) experienced a 17 per cent decline in supply and a 30 per cent fall in sales. Central Kolkata acco..

Next Story
Infrastructure Transport

New Expressway to Cut Pune-Bengaluru Travel Time by Half

The upcoming Pune-Bengaluru Expressway is expected to significantly improve connectivity and economic opportunities across Maharashtra and Karnataka. This 700-kilometre greenfield, access-controlled highway will cut the travel time between Pune and Bengaluru from 15 hours to just 7 hours, facilitating easier movement for both commuters and businesses. Starting from Bommanal in Karnataka’s Athani Taluk, the expressway will traverse important districts such as Belagavi, Bagalkot, and Jamakhandi. It will then enter Maharashtra at Kanjle, connect with the proposed Pune Ring Road, and pass throug..

Next Story
Infrastructure Transport

Nagpur’s Koradi Naka to Get Y-Shaped Flyover for Safer, Smoother Traffic

To alleviate traffic congestion and enhance safety at Koradi Naka in Nagpur, a Y-shaped flyover is currently being constructed on National Highway 47. Demolition work has already commenced, with the main construction scheduled to start on June 20, 2025.The project, costing Rs 430.37 billion, involves building a 1,090-meter-long flyover that will connect Farsa, the Mahadula Railway Overbridge (ROB), and Bokhara Road, and will also feature an underpass. The existing structure will be repurposed into a service road to facilitate local traffic.Koradi Naka has been identified as a significant "blac..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?