According to the data, PE investment in real estate fell to US $ 3.7 billion in 2024–25, from USD 3.8 billion in the earlier year.
During the financial year of 2020–21, PE Inflow was USD 6.4 billion, but the investment fell to USD at USD for 2021–22. The 2023-24 improved about 4.4 billion USD in the 2022-23 financial year before it declined in 2023-24.
“PE investment has declined continuously in the last five years, falling from USD 6.4 billion in FY 21 to about 3.7 billion USD in FY25.” Potty in FY25, “said, MD & CEO, MD & CEO of Encarack Capital.
According to the data, the share of foreign investors in total PE investments during the last financial year was 84 percent while the domestic was 16 percent.
In assets class, the office complex saw a decline in investment in USD 806 million in FY 25 and in FY 2014 from USD 2.2 billion. The advisor said, “The leasing activity remains strong, investors are cautious due to high interest rates and geopolitical stress.” PE investment in warehousing assets rapidly increased, compensated for a decline in arrival in housing and office properties.
The last financial year saw a significant deviation in the funding structure, in which hybrid deals increased by 42 percent of the total PE flow.
Equity and debt investment fell to 37 percent and 21 percent respectively.
Commenting on the report, Binitha Dalal, founder and managing partner of Mount's Kapital, said, “The marginal 3 percent dip in the PE flow is a sign of market recurrence compared to anxiety.
It also refers to a more mature investment approach, especially in segments such as warehousing, commercial and income-production residential property, he said.
“Despite the global headwinds, India's real estate sector is strong, and we can expect to carry forward the deployment of stable, strategic capital,” the broker said.
An alternative investment fund (AIF), Golden Growth Fund, CEO, CEO, CEO, Ankur Jalan said that PE flows have been flat in the previous financial year despite global uncertainties.
“India's growth speed and increasing prosperity have accelerated real estate activity, which has led to interest from investors,” he said.
