Private equity investment increased by 6% in India’s real estate in the first 9 months of FY 2025: Encarock
New Delhi:
PE Investment in Indian Real Estate: Private equity (PE) investment in Indian real estate increased by 6 percent to $ 2.82 billion during the first nine months (April-December) of FY 2024-25. This information was given in a latest report by real estate firm Enerok.
Bengaluru and Hyderabad lead
In the first nine months of FY 2025, the multi-city deal dominated the transaction table. Bengaluru and Hyderabad were at the forefront of the transaction table with 11 percent and 10 percent deal shares respectively. In the first nine months of the year 25, the Industrial and Logistics sector won 62 percent of the total investment, which from both office and residential sector There was a far ahead, out of which 14 percent and 15 percent were invested respectively.
However, the strong pre-cells and high participation of PSU banks in construction finance can reduce the demand for high-cost private equity financeing.
Possibility to continue strong operating performance
Strong leasing was seen in the Indian commercial real estate market, this segment saw less PE activity due to geopolitical concerns and high interest rates, which affected the valuation. The report states that strong operations of this sector continue to continue. The possibility of and the fall in interest rates will lead to re-increase in PE investment in this sector. The credit remains attractive to Industrial and Logistics Sector Investors, mainly manufacturing, e-commerce, consumer demand and third-party logistics Gets strong growth by.
The change in grade-A properties from grade-B has increased this increase even more, which reflects the growing focus on quality, large format and ESG ideas.