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
Infrastructure Urban

CMPDI installs bio-toilets to boost sanitation and hygiene

The Central Mine Planning and Design Institute (CMPDI), a subsidiary of Coal India Limited under the administrative control of the Ministry of Coal, has installed six modern bio-toilets equipped with bio-digesters and water tanks across various locations in Ranchi. The initiative was carried out under the ongoing Special Campaign 5.0, underscoring CMPDI’s commitment to cleanliness and sustainable sanitation. This effort forms part of a nationwide drive to enhance hygiene standards and improve efficiency in public offices. It aligns with the Government of India’s Swachh Bharat Mission and ..

Next Story
Infrastructure Urban

PM Modi unveils Rs 12.19 billion projects in Kevadia

Prime Minister Shri Narendra Modi inaugurated and laid the foundation stones for development projects worth Rs 12.19 billion in Kevadia on the eve of Sardar Vallabhbhai Patel’s 150th birth anniversary. The projects include the Birsa Munda Bhavan—an iconic centre dedicated to Bhagwan Birsa Munda—a residential complex for GSEC and SSNNL employees, the first phase of the hospitality district, and a Bonsai Garden. During the visit, the Prime Minister also flagged off a fleet of electric buses in Kevadia, an initiative aimed at providing comfortable and sustainable transport facilities for v..

Next Story
Infrastructure Transport

New metro link to connect Delhi airport’s T1 and T3

A new metro station will be part of the upcoming Golden Line to provide direct connectivity between Delhi airport’s Terminal 1 (T1) and Terminal 3 (T3), a senior official confirmed. Among the three terminals at the Indira Gandhi International Airport, Terminals 2 and 3 are located close to each other, while Terminal 1 lies a few kilometres away. In an interview with PTI, Delhi International Airport Ltd (DIAL) CEO Videh Kumar Jaipuriar said that the new integrated station is being planned to link Aerocity with Terminal 1. “The Golden Line was earlier planned to terminate at Aerocity. We h..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?