Mumbai, April 7 || Foreign capital made a strong comeback in the Indian real estate sector in FY25, with cumulative investments at 3.1 billion, compared to $2.6 billion in FY24, a report showed on Monday.
The surge in foreign investments has led to an increased share of foreign investors in Indian real estate -- accounting for 84 per cent of total investment in FY25, up from 68 per cent in FY24.
This revival highlights a renewed global investor interest in India’s real estate story despite persistent macro volatility, according to a report by Anarock Capital.
Logistics and warehousing sector emerged as the clear frontrunner in India last fiscal, attracting 48 per cent of private equity (PE) funding, the highest in five years.
This marks a sharp pivot from the 8–21 per cent range seen by the sector from FY21 to FY24, according to a report by Anarock Capital.
The Indian real estate sector continues to navigate a rapidly evolving investment landscape, with overall private equity (PE) investments continuing to soften in FY25.
Average deal size surged to 94 million in FY25, from $75 million in FY24. Last fiscal saw approximately $3.7 billion in PE funding.
The concentration of capital in fewer, larger transactions has increased significantly.