Amid sectoral shifts and global headwinds, India’s real estate has observed a dip in private equity (PE) investments. From a peak of $6.4 billion in FY21, investment volumes declined to $3.7 billion in FY25 — a 43 per cent drop over five years.
Logistics and warehousing attracted 48 per cent of PE funding in FY25 — the highest share in the last five years — up from the 8–21 per cent range seen between FY21 and FY24.
Shobhit Agarwal, MD & CEO of ANAROCK Capital, said, “PE investment volumes have steadily declined over the past five years due to reduced foreign investor activity amid heightened global macroeconomic uncertainty and geopolitical volatility.”
The number of deals also dropped to 39 in FY25, compared to 51 in FY24. This decline led to a spike in the average deal size, rising from $75 million to $94 million, explained Aashiesh Agarwaal, Senior Vice President & Investment Advisor at ANAROCK Capital.
However, foreign capital made a strong comeback, with cumulative investments in FY25 reaching $3.1 billion, up from $2.6 billion in FY24. The surge boosted the share of foreign investors in Indian real estate to 84 per cent of total PE investments in FY25 — a significant rise from 68 per cent in FY24. This revival signals renewed global investor interest in India’s real estate market, despite ongoing macroeconomic volatility.
Published on April 7, 2025
