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
Equipment

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Next Story
Infrastructure Energy

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Next Story
Infrastructure Energy

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App