Private equity investment in real estate dips 4% to $2.3 bn in H1 FY25
ECONOMY & POLICY

Private equity investment in real estate dips 4% to $2.3 bn in H1 FY25

Private equity investments in the Indian real estate sector saw a 4 per cent decline to $ 2.3 billion in the first half of the current fiscal year, primarily due to a reduction in inflows to office assets, according to a report by Anarock.

The real estate consultancy highlighted that the total number of deals dropped to 17 during April-September this year, down from 24 in the same period the previous year.

Shobhit Agarwal, MD & CEO of ANAROCK Capital, explained that private equity investments in office assets are largely driven by foreign investors, but these investments have decreased due to global factors like geopolitical tensions and high interest rates.

He also noted that despite this slowdown, the overall investment figures and the dominance of foreign investors in the Indian real estate market remained relatively stable, thanks to significant investments by ADIA and KKR in Reliance Retail's warehousing assets.

Private equity investments in the sector amounted to $ 1.2 billion in the first half of FY21, $ 2 billion in H1 FY22, $ 2.8 billion in H1 FY23, $ 2.4 billion in H1 FY24, and $ 2.3 billion in H1 FY25.

The average deal size increased by 23 per cent year-on-year, mainly driven by the Reliance-ADIA/KKR warehousing transaction, which accounted for 67 per cent of total investments in the first half of FY25.

Anarock further reported that 87 per cent of the total private equity investments during this period came from foreign investors. Industrial and logistics assets attracted 67 per cent of the total investments, significantly outperforming both the office and residential sectors, which each accounted for 17 per cent.

While private equity investments in the office sector fell by 79 per cent, the industrial and logistics sector experienced a significant 378 per cent growth in investments compared to the same period the previous year.

Private equity investments in the Indian real estate sector saw a 4 per cent decline to $ 2.3 billion in the first half of the current fiscal year, primarily due to a reduction in inflows to office assets, according to a report by Anarock. The real estate consultancy highlighted that the total number of deals dropped to 17 during April-September this year, down from 24 in the same period the previous year. Shobhit Agarwal, MD & CEO of ANAROCK Capital, explained that private equity investments in office assets are largely driven by foreign investors, but these investments have decreased due to global factors like geopolitical tensions and high interest rates. He also noted that despite this slowdown, the overall investment figures and the dominance of foreign investors in the Indian real estate market remained relatively stable, thanks to significant investments by ADIA and KKR in Reliance Retail's warehousing assets. Private equity investments in the sector amounted to $ 1.2 billion in the first half of FY21, $ 2 billion in H1 FY22, $ 2.8 billion in H1 FY23, $ 2.4 billion in H1 FY24, and $ 2.3 billion in H1 FY25. The average deal size increased by 23 per cent year-on-year, mainly driven by the Reliance-ADIA/KKR warehousing transaction, which accounted for 67 per cent of total investments in the first half of FY25. Anarock further reported that 87 per cent of the total private equity investments during this period came from foreign investors. Industrial and logistics assets attracted 67 per cent of the total investments, significantly outperforming both the office and residential sectors, which each accounted for 17 per cent. While private equity investments in the office sector fell by 79 per cent, the industrial and logistics sector experienced a significant 378 per cent growth in investments compared to the same period the previous year.

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?