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
Building Material

Ambuja Cements Drags JSW Cement to Court Over ‘Kawach’ Brand

Ambuja Cements, part of the Adani Group, has filed a trademark infringement case against JSW Cement in the Delhi High Court, alleging that its rival copied the ‘Kawach’ brand with its new product ‘Jal Kavach’.Justice Manmeet Pritam Singh Arora issued summons to JSW Cement and its subsidiary, JSW IP Holdings Pvt Ltd, while referring the matter to mediation. Hearings are scheduled to resume on October 15 if no settlement is reached.Ambuja, which registered the ‘Kawach’ trademark in 2019, argues that the term ‘Kavach’—meaning shield—is the distinctive feature of its branding. ..

Next Story
Technology

Bentley Systems Named Innovation Partner of the Year 2025 by Afcons

Bentley Systems, the infrastructure engineering software company, has been recognised by Afcons Infrastructure Limited as its Innovation Partner of the Year 2025 at the Innovation Partners 2025 Felicitation Ceremony in Mumbai. The award acknowledges Bentley’s contribution to Afcons’ engineering digitalisation journey through an enterprise agreement providing access to over 250 Bentley engineering software tools. This adoption has enabled Afcons to accelerate project delivery, standardise digital workflows, and strengthen innovation across its infrastructure portfolio. Among key i..

Next Story
Infrastructure Urban

SBI Sells 13.18% Stake in Yes Bank to Japan’s SMBC

State Bank of India (SBI) has completed the sale of a 13.18 per cent stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for over Rs 8,889 crore. The divestment is part of a Rs 13,482 crore deal finalised in May with SMBC and seven private banks.Following the transaction, SBI’s shareholding in Yes Bank stands at 10.8 per cent. The deal, involving 4,134.4 million shares at Rs 21.50 each, is the largest cross-border transaction in the Indian banking sector.SBI Chairman C S Setty described the 2020 RBI-led rescue of Yes Bank as a pioneering public-private partnership, addi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?