Private Equity Investment In Indian Real Estate Rises By 6% To USD 2.82 Billion

Private equity (PE) investment in Indian real estate saw a 6% increase, reaching USD 2.82 billion during the April-December period of the current fiscal year. This surge was primarily driven by a strong inflow of funds into industrial and logistics parks, according to data from Anarock.

Anarock’s data revealed that PE investment in Indian real estate grew from USD 2.66 billion in the same period last year to USD 2.82 billion in 2024. However, the number of PE deals declined, with only 24 deals recorded in the first nine months of the 2024-25 fiscal, down from 30 deals in the previous year.

Foreign funds played a significant role in driving the investment surge, contributing 82% of the total PE inflows between April and December 2024. In contrast, domestic funds accounted for just 18% of the investments.

The industrial and logistics sector emerged as the largest beneficiary, accounting for 62% of total PE investments. Other sectors included housing (15%), office space (14%), and mixed-use projects (9%).

Major Deals Boost Investment

Shobhit Agarwal, MD and CEO of Anarock Capital, highlighted that the top 10 deals in the first nine months of the fiscal year represented 93% of total PE transactions. The largest deal was the Reliance-ADIA/KKR warehousing deal, valued at USD 1.54 billion. Agarwal noted that this, along with the USD 204 million Blackstone-LOGOS equity deal, significantly boosted the logistics and warehousing sector.

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The hybrid nature of the Reliance-ADIA/KKR deal resulted in hybrid transactions making up 55% of total PE transactions during this period. Debt instruments accounted for 24%, while equity investments contributed 21%.

Growing Confidence in Indian Real Estate

Vishal Khare, CEO and Founder of ARCA Alternatives, commented on the growing confidence in the Indian real estate market. He pointed out that the market is evolving beyond traditional residential and commercial segments to include sophisticated offerings such as medical services, education, holiday homes, and senior care living. This shift reflects increasing maturity and investor confidence.

Ankur Jalan, CEO of Golden Growth Fund, emphasized that the rise in PE investment showcases the inherent strengths of the Indian real estate sector, driven by strong demand. He encouraged high-net-worth individuals (HNIs) both in India and abroad to invest in key markets, including Delhi, for high returns.