Platform-style partnerships between global investors and Indian developers are expected to gain further traction over the next few years. This comes as institutional capital increasingly shifts from one-off asset acquisitions to scalable, long-term strategies.
Private equity investments in Indian real estate dropped 15 per cent in July-September to USD 819 million amid global uncertainties, according to property consultant Anarock.
Indian Real Estate Investment Trusts (REITs) are generating an average yield of 6-7.5 per cent for unitholders, better than many mature markets, including the US, according to a report by CREDAI and Anarock. CREDAI, the apex body of Indian real estate developers, and property consultant Anarock released a report 'Indian REITs - A Gateway to Institutional Real Estate' at an event in Singapore.
Since the first Reit listing in 2019, the sector has grown to a market capitalisation of about $18 billion as of August 2025, and is projected to cross $25 billion by 2030.
India's top listed real estate developers reported steady growth in Q4FY25, supported by healthy pre-sales, even as earnings reflected signs of moderation amid elevated housing prices and subdued launches.
'Investors with a long-term investment horizon and the risk appetite for fluctuations in property values may find SM Reits a viable option.'
The aggregate value of private equity (PE) deals in Indian real estate has declined nearly 30 per cent to $3.6 billion in 2023-24 (FY24) as compared to $5.1 billion in FY20, according to a report released on Monday.
Private equity (PE) investment in real estate declined 5 per cent year-on-year in April-June to $1.9 billion because of high interest rates, according to Anarock. PE inflows stood at $2 billion in the year-ago period. Real estate consultant Anarock has come out with a report titled 'FLUX Q1 FY24 Market Monitor for Capital Flows in Indian Real Estate'.
Private equity (PE) investments in real estate sector fell 32 per cent to $4.3 billion in the last fiscal year mainly due to the COVID-19 pandemic, according to property consultant Anarock. PE investments in real estate stood at $6.3 billion in the 2020-21 financial year. According to Anarock Capital's FY22 year-end edition of its FLUX report, PE inflows in real estate were $5.1 billion in FY'20, $5.6 billion in FY'19 and $5.4 billion in 2017-18 fiscal. The consultant attributed the fall in PE investments in real estate to the second wave of the COVID-19, leading to multiple lockdowns in various parts of the country.
In rupee terms, this amounts to about Rs 14,720 crore (Rs 147.2 billion), considering the rate of Rs 46/dollar suggested in the study.
Most players are looking to invest anywhere between $500 million and $1 billion in new ventures in the next couple of years, said experts on this segment.
A 5% increase is expected due to additional interest on approval costs.
Big conglomerates of Japan, including Mitsubishi Corporation, Sumitomo Corporation, and Mitsui Group, are looking to both build and buy commercial properties in key Indian cities.
GIC entered Indian real estate in 2005, when it did a deal with residential developer XS Real, a Chennai-based developer
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RBI's move to link loan payment to construction progress is likely to bring down property prices.
Indian property markets are not in the pink of health.
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