Indian realty sector attracts 6% more PE investment in April-December to $2.82 billion: Anarock

Private equity investment in Indian real estate rose 6 per cent to USD 2.82 billion during the April-December period of this fiscal, driven by a surge in fund inflow in industrial & logistics parks, according to Anarock.

Real estate consultant Anarock data showed that the Private Equity (PE) investment in real estate rose 6 per cent to USD 2.82 billion during the April-December period of this fiscal from USD 2.66 billion in the year-ago period.

The number of PE deals dropped to 24 during the first nine months of the 2024-25 fiscal from 30 in the year-ago period.

As per the data, foreign funds contributed 82 per cent to the total PE investments during April-December 2024, while domestic only 18 per cent.

Among assets class, the industrial and logistics sector accounted for 62 per cent of the total investments, housing 15 per cent, office 14 per cent and mixed-use projects 9 per cent.

Shobhit Agarwal, MD and CEO, Anarock Capital, said, the top 10 deals comprised 93 per cent of total PE transactions in the first nine months of this fiscal year.

He noted that the the total PE investment was led by the Reliance-ADIA/KKR warehousing deal which was worth USD 1.54 billion.

"This deal, along with the USD 204 million Blackstone-LOGOS equity deal, significantly boosted the logistics and warehousing sector, which captured 62 per cent of total investment," Agarwal said.

Given the hybrid nature of the outsized Reliance-ADIA/KKR deal, hybrid transactions accounted for 55 per cent of the total transactions in the period.

Debt instruments accounted for 24 per cent and equity 21 per cent.

Commenting on the report, Vishal Khare, CEO and Founder, ARCA Alternatives, said, " We are seeing increased confidence in the Indian Real Estate Market." 

He said the property market is expanding from simple residential and commercial segments into sophisticated products around medical services, education, holiday homes and senior care living as newer offerings.

"We see this as a sign of maturity and confidence from investors into the overall India Real Estate market," Khare said.

Ankur Jalan, CEO of Golden Growth Fund, said the rise in private equity investment in Indian real estate shows the inherent strengths of the sector on the back of strong demand momentum.

Jalan said it is the right time for HNIs, both in India and abroad, to invest across major cities, including Delhi's real estate market and earn high returns.