Private equity investment in Indian real estate falls 4%
Real Estate

Private equity investment in Indian real estate falls 4%

Private equity investments in the Indian real estate sector decreased by 4% to $2.3 billion in the first half of the fiscal year, primarily due to a decline in funding for office assets, according to Anarock.

The consulting firm reported that the number of deals dropped to 17 during April-September, down from 24 in the same period last year. Shobhit Agarwal, MD & CEO of Anarock Capital, noted that foreign investors, who primarily drive office investments, have pulled back due to global issues such as geopolitical tensions and rising interest rates.

Despite the decline, the overall dominance of foreign investors in the Indian real estate market remains stable, bolstered by significant investments like the ADIA/KKR partnership in Reliance Retail's warehousing assets.

Historical data shows a fluctuating trend in private equity investments: $1.2 billion in H1 2020-21, $2 billion in H1 2021-22, $2.8 billion in H1 2022-23, $2.4 billion in April-September 2023-24, and now $2.3 billion in H1 2024-25.

Interestingly, the average deal size has increased by 23% year-on-year, largely driven by the Reliance-ADIA/KKR warehousing deal, which accounted for 67% of total investments in the first half of FY25.

Foreign investors comprised 87% of the total private equity investments during this period. The industrial and logistics sectors attracted 67% of total investments, significantly outperforming both the office and residential sectors, which each garnered 17%. While office sector investments plummeted by 79%, the industrial and logistics sectors saw a remarkable 378% increase compared to the previous financial year.

Private equity investments in the Indian real estate sector decreased by 4% to $2.3 billion in the first half of the fiscal year, primarily due to a decline in funding for office assets, according to Anarock. The consulting firm reported that the number of deals dropped to 17 during April-September, down from 24 in the same period last year. Shobhit Agarwal, MD & CEO of Anarock Capital, noted that foreign investors, who primarily drive office investments, have pulled back due to global issues such as geopolitical tensions and rising interest rates. Despite the decline, the overall dominance of foreign investors in the Indian real estate market remains stable, bolstered by significant investments like the ADIA/KKR partnership in Reliance Retail's warehousing assets. Historical data shows a fluctuating trend in private equity investments: $1.2 billion in H1 2020-21, $2 billion in H1 2021-22, $2.8 billion in H1 2022-23, $2.4 billion in April-September 2023-24, and now $2.3 billion in H1 2024-25. Interestingly, the average deal size has increased by 23% year-on-year, largely driven by the Reliance-ADIA/KKR warehousing deal, which accounted for 67% of total investments in the first half of FY25. Foreign investors comprised 87% of the total private equity investments during this period. The industrial and logistics sectors attracted 67% of total investments, significantly outperforming both the office and residential sectors, which each garnered 17%. While office sector investments plummeted by 79%, the industrial and logistics sectors saw a remarkable 378% increase compared to the previous financial year.

Next Story
Infrastructure Transport

Rail India Conference 2025 to Drive Green & Modern Rail Revolution

Indian Railways is undergoing a major transformation with electrification, renewable energy, the Kavach safety system, and high-speed rail. The Rail India Conference & Expo 2025, organised by Messe Frankfurt India Trade Fairs, will take place on April 25 at The Lalit, New Delhi, focusing on sustainable, safe, and modern rail development.The event will highlight key projects like Metro Rail, Hyperloop, and Vande Bharat trains. With Rs 2,520 billion allocated to railways in the Union Budget 2025-26, investments in high-speed rail and safety enhancements are set to accelerate.The conference w..

Next Story
Real Estate

Chandak Highscape City Offers 5% Booking, Rest on Terrace Slab

Chandak Group has introduced an exclusive payment scheme for homebuyers at Chandak Highscape City in Chembur (E). Under this limited-period offer, buyers can secure a home by paying just five per cent upfront, with the balance due upon terrace slab completion.Located in one of Mumbai’s rapidly developing areas, Chandak Highscape City is Chembur’s largest and greenest project. It offers 1, 2, and 3 BHK residences with over 45 amenities, including recreational spaces, serene zones, and premium retail options.A spokesperson from Chandak Group stated, “We aim to make homeownership more acces..

Next Story
Resources

Office Fit-Out Costs Rise in India amid Demand for Premium Workspaces

Office fit-out costs in India continued to rise in 2024, with Mumbai leading at US$73 per sq. ft., followed by Delhi at US$ 69 per sq. ft., according to Cushman & Wakefield’s latest Fit-Out Cost Guide. Bengaluru follows at US$67 per sq. ft., while Ahmedabad, Chennai, Hyderabad, Kolkata, and Pune stand at US$ 65 per sq. ft.Despite a three per cent year-on-year increase, India remains one of the most cost-effective office fit-out destinations in the Asia Pacific (APAC) region. The report notes a shift towards premium, tech-enabled, and sustainable workspaces as companies invest more per sq..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?