Private equity deals in Indian real estate increased marginally

Private Equity deals in Indian real estate rose in Q1 FY25, primarily driven by a single large investment in warehousing assets of Reliance Retail.

“The top private equity deal for approximately USD 1.5 billion between Reliance-ADIA-KKR – accounted for a whopping 71% of the total PE deals in Q1 FY25. In Q1 FY24, the top PE deal by Brookfield India RE Trust and GIC was approximately USD 1.4 billion and accounted for a marginally higher 74% share of the total PE deals,” said Shobhit Agarwal, MD and CEO, Anarock capital.

The average deal size increased by 23% Y-o-Y, driven by the Reliance Retail warehousing deal.


On a moving average basis, activity by foreign investors was lower than levels witnessed previously, despite the current spike in deal value. This is due to an overall weak macro-economic environment, and elevated geo-political risks.

Besides this large deal, the current quarter also witnessed contributions from Hyderabad, Bengaluru, Pune and MMR.

“Pure debt and pure equity transactions took a backseat during the quarter in light of the Reliance – ADIA – KKR transaction in the deal table,” said Aashiesh Agarwaal, SVP - Research & Investment, ANAROCK Capital.

While transactions in Q1 FY24 witnessed a marked skew towards offices owing to the GIC-Brookfield deal, Q1 FY25 was significantly aligned towards logistics.

As in Q1 FY24, foreign investors continued to dominate the quarter and domestic investors operated on the sidelines. The quarter witnessed a softening of volumes in the residential segment compared to the previous quarter, largely due to elevated prices and the high base of previous quarter.

However, volumes on a y-o-y basis were higher, indicating a robust overall trend. Mumbai and Pune continued to dominate sales with over 50% share of sales volumes.

Office leasing remained buoyant during the quarter, led by the Technology, BFSI and manufacturing sectors. Leveraging a favourable ecosystem, Global Captive Centres(GCCs) have also emerged as a key occupier group contributing to a robust demand for Grade A office space.