Real Estate PE Inflows Jump 23% To $2.7 Billion, Domestic Investors Drive Recovery

New Delhi: Private equity investment in Indian real estate rose 23% year-on-year to $2.7 billion during April–September 2026, marking the strongest first half since H1 FY23, according to ANAROCK Capital.

The recovery highlights investor interest in property assets despite an uncertain global environment. First-half inflows represented approximately 63% of the $4.3 billion invested across the entire FY26 financial year.

Deal Activity and Investment Outlook

The sector recorded 30 transactions in H1 FY27, compared with 22 a year earlier. Average deal size increased 18% to $91 million, indicating a shift towards larger investment commitments.

ANAROCK Capital estimates that full-year private equity inflows could approach $4.8 billion, potentially the highest level in at least five years. However, this projection depends on second-half investments matching those recorded in the corresponding period of FY26.

The listing of a sixth real estate investment trust during the period strengthened exit opportunities for private investors. Such routes can help release capital for subsequent transactions and support continued investment activity.

Domestic Investors Expand Their Presence

Domestic investors deployed around $1.3 billion across 24 deals, accounting for 48% of total inflows. Their investment was nearly six times the $220 million recorded in H1 FY26.

Foreign investors contributed approximately $1.4 billion through six transactions, representing reported year-on-year growth of 19%.

ANAROCK Capital CEO Shobhit Agarwal said real estate alternative investment funds, family offices and domestic institutions increasingly have the capacity and confidence to support large transactions.

Office Leasing and Data Centres Support Momentum

Agarwal expects investment momentum to continue, supported by strong office leasing, growing data centre demand and healthy hotel performance.

He said investors were committing larger amounts, acquiring equity positions and supporting businesses capable of expansion. The recovery, he added, suggests India is increasingly viewed as a long-term investment destination.

Growing domestic participation alongside overseas capital reflects a broader institutional investor base, while improved exit options could support fresh real estate deals.