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Indian Real Estate Sees $819 Million PE Investment in July–September, Down from $967 Million YoY
Anarock: Amid global uncertainties, private equity investments in Indian real estate declined by 15 percent to $819 million in July-September. Private equity (PE) inflows were $967 million in the same period last year. Let's find out in detail what Anarock has to say about this.
Amid global uncertainties, private equity investments in Indian real estate declined by 15% to $819 million in July-September. According to property consultant Anarock, Private equity (PE) inflows were $967 million in the same period last year.
According to data from Anarock Capital, an arm of Anarock, PE investments in the April-September period of FY25-26 declined by 15% to $2.2 billion from $2.6 billion in the same period last fiscal. Foreign capital accounted for 73% of total investments during the first half of this fiscal year.
Anarok Capital CEO Shobhit Agarwal said, "Strong deal volumes in the first quarter of FY2026 offered a glimmer of hope, though this was short-lived as activity slowed again in the second quarter. On a full-year basis, PE activity has steadily declined from a peak of $6.4 billion in FY2021 to $3.7 billion in FY2025."
He noted that real estate sales volumes in the residential sector are higher, and therefore, developers' cash flows have improved significantly. "This has reduced their dependence on expensive AIFs," Agarwal said. "Furthermore, due to improved business dynamics, banks have sufficient capital and have become more willing to lend to real estate, unlike in earlier years."
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Regarding commercial real estate, he said there is currently considerable uncertainty due to the Russia-Ukraine war. This is leading to rising inflation and other global macroeconomic uncertainties.
Aggarwal said, "This is why global investment flows have declined. We consider this a temporary phenomenon as India remains a developing market and one of the few countries where investment can grow. Once these uncertainties are resolved and better clarity emerges, PE fund flows into commercial real estate will continue to pick up."
During the first six months of this fiscal year, there was no PE investment in the industrial and logistics sectors. However, retail, mixed-use, and commercial asset classes saw strong investment. The consultant said that investment proposals in hotels and data centers came in during the current half year.
