Ziraat Times Team Report
- From a peak of USD 6.4 Bn in FY21, investment volumes have declined to USD 3.7 Bn in FY25 – a fall of 43% over a five-year period.
- Number of deals dropped to 39 in FY25 (from 51 in FY24)
- Average deal size surged to USD 94 Mn, from USD 75 Mn in FY24
- Top Deals in FY25 – GIC-Xander → Shapoorji Pallonji: USD 258 Mn, Keppel Land → RMZ + CPPIB: USD 251 Mn, Blackstone → LOGOS India + Kolte Patil: USD 338 Mn combined
- 84% of total funding in FY25 was foreign capital (vs. 68% in FY24)
- Logistics & Warehousing claimed 48% of total investment — the highest in 5 years
- Hybrid deals surged to 42%, largely due to the Reliance–ADIA–KKR transaction
- Pan-India transactions accounted for 52% of total deals in FY25, showing increased investor preference for diversified plays
Mumbai: India’s real estate sector continues to navigate a rapidly evolving investment landscape, with private equity (PE) investments continuing to soften in FY25. The newly released ANAROCK Capital FLUX FY25 Annual Edition provides a detailed retrospective on PE investments in Indian real estate, revealing a nuanced picture of shifting investor preferences in the evolving real estate space in the backdrop of global economic headwinds.
| Amount (USD Bn) | |
| FY21 | 6.4 |
| FY22 | 4.3 |
| FY23 | 4.4 |
| FY24 | 3.8 |
| FY25 | 3.7 |
Five-Year Trend: A cumulative decline of 43%
Shobhit Agarwal, MD & CEO – ANAROCK Capital, says, “PE investment volumes have steadily declined over the past five years, dropping from USD 6.4 billion in FY21 to approximately USD 3.7 billion in both FY25. This represents a 43% decrease from FY21 levels, primarily driven by reduced foreign investor activity amid heightened global macroeconomic uncertainty and geopolitical volatility.”
Top 10 PE Deals: Bigger Bets, Fewer Plays
The concentration of capital in fewer, larger transactions has increased significantly. In FY25, the top 10 deals accounted for 81% of total PE investment value, up from 69% in FY24. This spike is largely attributed to the mega Reliance–ADIA–KKR hybrid deal, which alone contributed to ~42% of FY25’s total value.
| Capital Provider | Recipient | Amount
(INR Cr) |
Amount
(USD Mn) |
| GIC – Xander | Shapoorji Pallonji | 2,150 | 258 |
| Keppel Land | RMZ Corporation & CPPIB | 2,100 | 251 |
| Alpha Wave Global | Oberoi Realty | 1,250 | 145 |
| Blackstone | LOGOS India | 1,725 | 204 |
| Blackstone | Kolte Patil Developers | 1,167 | 134 |
Top 5 Debt Deals (FY25)
| Capital Provider | Recipient | Amount (INR Cr) | Amount (USD Mn) |
| Kotak Realty | Elan Group | 1,200 | 143 |
| SSG Capital | Century Real Estate | 721 | 85 |
| PAG | Shapoorji | 505 | 61 |
| SSG Capital | Century Real Estate | 652 | 75 |
| Kotak Investment | Supertech | 450 | 52 |
Deal Count Down, Ticket Sizes Up
“While the number of deals dropped sharply to 39 in FY25, from 51 in FY24 – a decline of 24%, total investment declined by 3%,” says Aashiesh Agarwaal, Senior Vice President & Investment Advisor, ANAROCK Capital. “This has led to a spike in average deal size—from USD 75 million to USD 94 million, highlighting a more focused and strategic deployment of capital.”
| No. of deals | Average Deal Size (USD Mn) | |
| FY21 | 43 | 149 |
| FY22 | 54 | 79 |
| FY23 | 55 | 79 |
| FY24 | 51 | 75 |
| FY25 | 39 | 94 |
Capital Flows: Pan-India Preference
In FY25, Pan-India / Multi-city transactions accounted for 52% of all deal value—up from 47% in FY24 and just 25% in FY23.
| NCR | MMR | Bengaluru | Chennai | Hyderabad | Pune | Kolkata | Pan India / Multi-city | Other | |
| FY24 | 8% | 24% | 8% | 2% | 7% | 4% | 0% | 47% | 0% |
| FY25 | 8% | 12% | 10% | 7% | 8% | 2% | 0% | 52% | 1% |
“Barring the Covid year, pan-India and multi-city transactions have been rising steadily – increasing from 14% in FY19 to 52% in FY25. This underscores our view of a greater sector formalization and a shift toward large, diversified portfolios.” adds Aashiesh Agarwaal, Senior Vice President & Investment Advisor, ANAROCK Capital.
| Share of Pan India / Multi-city transactions | |
| FY19 | 14% |
| FY20 | 26% |
| FY21 | 74% |
| FY22 | 32% |
| FY23 | 25% |
| FY24 | 47% |
| FY25 | 52% |
Equity vs Debt vs Hybrid: Hybrids Rise
FY25 saw a significant deviation in funding structure, with hybrid deals surging to 42% of total PE capital—primarily due to the Reliance-ADIA-KKR transaction. Equity and debt investments dropped to 37% and 21% respectively.
| % Debt | % Equity | % Hybrid | |
| FY21 | 11% | 88% | 1% |
| FY22 | 20% | 77% | 3% |
| FY23 | 32% | 68% | 0% |
| FY24 | 23% | 74% | 3% |
| FY25 | 21% | 37% | 42% |
Sector Spotlight: Warehousing Dominates
Logistics and warehousing emerged as the clear frontrunner in FY25, attracting 48% of PE funding, the highest in five years.
This marks a sharp pivot from the 8–21% range seen from FY21 to FY24.
| Retail | Commercial | Residential | Data Centre | Logistics & Warehousing | Others | |
| FY24 | 0% | 59% | 27% | 2% | 9% | 3% |
| FY25 | 0% | 22% | 15% | 0% | 48% | 15% |
Foreign Funding Rebounds
Foreign capital made a strong comeback, with cumulative investments in FY25 at USD 3.1 Bn, compared to USD 2.6 Bn in FY24. The surge in foreign investments has led to an increased share of foreign investors in Indian real estate – accounting for 84% of total investment in FY25, up from 68% in FY24. This revival highlights a renewed global investor interest in India’s real estate story despite persistent macro volatility.
| Foreign | Domestic | Mix | |
| FY21 | 94% | 5% | 1% |
| FY22 | 82% | 14% | 4% |
| FY23 | 76% | 24% | 0% |
| FY24 | 68% | 26% | 6% |
| FY25 | 84% | 16% | 0% |
Market Insights by Sector
- Residential Real Estate – After a stellar run, the residential sector has entered a consolidation phase, with average deal size dropping to USD 117 million (Q2–Q4 FY25) from USD 233 million (Q1 FY23–Q4 FY25). However, international equity interest is emerging, as seen in Blackstone’s investment in Kolte Patil and Alpha Wave’s deal with Oberoi Realty.
- Commercial Real Estate – Offices saw a steep decline in investment—USD 806 Mn in FY25 vs. USD 2.2 Bn in FY24. While leasing activity remains robust, investor caution persists due to high interest rates and geopolitical stress. The outlook is optimistic with potential rate cuts on the horizon.
- Retail Real Estate – Retail continues to thrive on strong consumer demand. While mall operators like DLF, Nexus, and Phoenix are expanding aggressively, PE activity remains limited due to dominance by well-funded players and REITs.
- Industrial & Logistics – Warehousing demand is buoyed by manufacturing, e-commerce, and 3PL growth. A clear shift toward Grade A assets and ESG-compliant formats is being observed, reinforcing long-term institutional interest.
Outlook
With capital consolidating around quality assets, and global investors re-engaging, Indian real estate is poised for a new chapter of strategic growth. The FLUX FY25 edition captures these transitions in detail, laying the groundwork for investment strategies and sectoral shifts in FY26 and beyond.
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