Synopsis
On April 7, a report revealed that foreign capital has significantly returned to the Indian real estate sector in FY25, with cumulative investments reaching $3.1 billion, compared to $2.6 billion in FY24, highlighting a renewed global interest in the market.Key Takeaways
- Foreign investments in Indian real estate reached $3.1 billion in FY25
- Investors accounted for 84% of total investments in FY25
- Logistics and warehousing attracted 48% of private equity funding
- Average deal size increased to $94 million
- Top 10 deals comprised 81% of total PE investment value
Mumbai, April 7 (NationPress) Foreign investment has made a significant return to the Indian real estate market in FY25, with total investments reaching $3.1 billion, a rise from $2.6 billion in FY24, as reported on Monday.
The increase in foreign investments has resulted in a larger share of international investors in the Indian market, representing 84 percent of total investments in FY25, up from 68 percent in FY24.
This resurgence indicates a renewed global interest in India’s real estate narrative, despite ongoing macroeconomic fluctuations, according to a report by Anarock Capital.
The logistics and warehousing sector stood out last fiscal year, capturing 48 percent of private equity (PE) funding, marking the highest share in five years.
This represents a significant shift from the 8-21 percent range observed in the sector from FY21 to FY24, as per the report by Anarock Capital.
The Indian real estate sector continues to adapt to a rapidly changing investment scenario, with overall private equity investments trending downwards in FY25.
The average deal size increased to $94 million in FY25, up from $75 million in FY24, with approximately $3.7 billion in PE funding recorded last fiscal year.
The concentration of capital in fewer, larger transactions has seen a notable increase.
In FY25, the top 10 deals made up 81 percent of total PE investment value, compared to 69 percent in FY24.
Aashiesh Agarwaal, senior vice president and investment advisor at Anarock Capital, remarked that the rise in average deal size from $75 million to $94 million reflects a more targeted and strategic capital allocation.
In FY25, pan-India and multi-city transactions constituted 52 percent of all deal value, increasing from 47 percent in FY24 and just 25 percent in FY23.
“Excluding the Covid year, pan-India and multi-city transactions have shown a consistent upward trend, rising from 14 percent in FY19 to 52 percent in FY25. This supports our perspective on greater sector formalization and a transition towards larger, diversified portfolios,” Agarwaal added.
With capital increasingly directed towards quality assets and renewed engagement from global investors, Indian real estate is set to embark on a new phase of strategic growth.
