Pvt equity inflow in real estate declines 3% to $3.7 bn in FY25: Anarock

New Delhi: Private equity investments in Indian real estate declined 3 per cent last fiscal year to $3.7 billion due to lower fund inflow in office buildings, according to Anarock.

Real estate consultant Anarock’s arm Anarock Capital on Monday released its data of private equity (PE) deals in Indian real estate.

As per the data, the PE investments in real estate declined to $3.7 billion in 2024-25 from $3.8 billion in the preceding year.

During the 2020-21 fiscal year, the PE inflow was $6.4 billion, but the investments fell in 2021-22 to $4.3 billion. It marginally improved in the 2022-23 fiscal year to $4.4 billion before decreasing in 2023-24.

As per the data, the share of foreign investors in total PE investments during the last fiscal year stood at 84 per cent while domestic 16 per cent.

In assets class, office complexes saw a steep decline in investment to $806 million in FY25 from $2.2 billion in FY24.

“While leasing activity remains robust, investor caution persists due to high interest rates and geopolitical stress,” the consultant said.

The PE investments in warehousing assets rose sharply, compensating for to decline in inflow in housing and office properties.

The last fiscal year saw a significant deviation in funding structure, with hybrid deals surging to 42 per cent of total PE inflow. Equity and debt investments dropped to 37 per cent and 21 per cent, respectively.

Ankur Jalan, CEO, Golden Growth Fund, an Alternative Investment Fund (AIF), said the PE inflows remained flat last fiscal despite global

uncertainties.