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 Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?