The aggregate value of private equity (PE) deals in the Indian real estate sector has been on steady decline over the past five years, posting more than 27 percent fall to $3.7 billion in FY 24 from $5.1 billion in FY20, a market study said.
The investment trend also saw a major shift of late, with the share of foreign capital dropping to 65 percent in FY24, while the share of domestic investors rose to 29 percent in the latest fiscal, as against a mere eight percent in FY20, the Anarock Capital FLUX report said.
“The decline in PE investments in Indian real estate has been due to lower activity by foreign investors, due to global macro-economic factors and geopolitical instability,” said Shobhit Agarwal, MD & CEO of Anarock Capital.
The $1.4 bn GIC-Brookfield deal topped the top five PE deals of FY24, followed by the $325 million CPPIB-RMZ deal and the $240 million ADIA-Kotak deal with Prestige, the report said.
The GIC-Brookfield deal accounted for about 40 percent of the overall deal value for FY24.
While the number of deals in FY24 remained largely constant, the aggregate deal value has reduced due to a sharply lower average deal size, according to the report.
The average ticket sizes have reduced by 30 percent to $75 million in FY24 from $107 million in FY20, it said.
The report also showed that while there has been a consistent share of PE investments in residential real estate at 28 percent year-on-year, there is a yearly decline of 17 percent in the same by value.
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