Realty PE Landscape Sees Major Change In First 9 Mths Of FY25

Mumbai: Despite a decrease in deal numbers from 30 in 9M FY24 to 24 in 9M FY25, the Indian real estate private equity (PE) landscape saw significant transformation during the first nine months of FY25. The high-profile Reliance-ADIA/KKR warehousing transaction was the driving force behind the 6 per cent increase in the total investment value to $2.82 billion.

Talking to Bizz Buzz, Shobhit Agarwal, MD & CEO – Anarock Capital says, “In the first nine months of fiscal year 2024, the average deal size increased by 32.5 per cent, rising from $88.5 million to $117.3 million in the first nine months of fiscal year 2025. Significantly bolstered by the $1.54 billion Reliance-ADIA/KKR transaction, the industrial and logistics sector attracted 62 per cent of the total PE investments.”

In 9M FY25, hybrid deals comprised 55 per cent of the total PE transactions, with debt and equity transactions comprising 24 per cent and 21 per cent, respectively. Bengaluru and Hyderabad dominated the transaction tables with 11 per cent and 10 per cent deal percentages, respectively, while the Reliance-ADIA/KKR transaction was the leading multi-city deal, he said.

The 2024 Indian real estate investment landscape exhibited some shift from the previous calendar year. 2023 was characterized by a relatively small number of high-value transactions. 2024, however, exhibited a marked increase in deal volume but a notable shift toward smaller-scale projects.

Dr Prashant Das, Chairperson (Finance & Accounting)/Associate Professor (Real Estate) at IIMA says, “The sector displayed increased diversification, with a significant influx of capital into residential development, exemplified by the Prestige Group investment. The dramatic rise of investment in warehousing and logistics (e.g. the massive Reliance deal) appears to be driven by e-commerce expansion.”

The persistent strong presence of foreign capital, particularly from sovereign wealth funds and global private equity firms, underscores enduring confidence in the Indian market. However, a nuanced observation reveals -perhaps- a strategic shift in investor approaches. Blackstone diversified beyond large-scale acquisitions, GIC’s moved toward direct asset ownership, and CPPIB showed a stronger strong focus on greenfield developments, he said.