Private equity (PE) investment in Indian real estate saw a 6% increase, rising to USD 2.82 billion during the April-December period of the 2024-25 fiscal year, according to data from real estate consultancy Anarock. This growth is primarily driven by a surge in fund inflows into industrial and logistics parks.
The figure compares to USD 2.66 billion during the same period in the previous year. However, the number of PE deals dropped to 24 in the first nine months of the current fiscal, down from 30 during the same period last year.
Foreign funds made up 82% of total PE investments, while domestic funds contributed 18%. Among the various asset classes, the industrial and logistics sectors attracted the largest share, accounting for 62% of the total investments. Housing accounted for 15%, office spaces 14%, and mixed-use projects 9%.
Shobhit Agarwal, Managing Director and CEO of Anarock Capital highlighted that the top 10 deals accounted for 93% of the total PE transactions in the first nine months of the fiscal. A significant contributor was the USD 1.54 billion warehousing deal between Reliance-ADIA/KKR, which, alongside the USD 204 million Blackstone-LOGOS equity deal, boosted the logistics and warehousing sector.
Agarwal also noted that hybrid transactions made up 55% of total transactions during the period, with debt instruments accounting for 24% and equity comprising 21%.
Vishal Khare, CEO and Founder of ARCA Alternatives, emphasized that the increasing confidence in the Indian real estate market is evident as it expands beyond residential and commercial sectors to include medical services, education, holiday homes, and senior care living. He views this as a sign of the sector’s maturity and investor confidence.
Ankur Jalan, CEO of Golden Growth Fund, attributed the rise in PE investment to the strong demand momentum in the sector, adding that it’s an ideal time for high-net-worth individuals (HNIs) both in India and abroad to invest in major cities, including Delhi, and earn substantial returns.
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