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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. In FY25, the top 10 deals accounted for 81 per cent of total PE investment value, up from 69 per cent in FY24. Aashiesh Agarwaal, senior vice president and investment advisor, Anarock Capital, said the spike in average deal size — from $75 million to $94 million -- highlights a more focused and strategic deployment of capital. In FY25, pan-India/multi-city transactions accounted for 52 per cent of all deal value — up from 47 per cent in FY24 and just 25 per cent in FY23. “Barring the Covid year, pan-India and multi-city transactions have been rising steadily – increasing from 14 per cent in FY19 to 52 per cent in FY25. This underscores our view of a greater sector formalization and a shift toward large, diversified portfolios,” Agarwaal added. With capital consolidating around quality assets, and global investors re-engaging, Indian real estate is poised for a new chapter of strategic growth.