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…
Private equity investment in India's real estate market surged by 23% year-on-year to $2.7 billion during the first half of 2026, according to ANAROCK Capital. This marked the strongest performance since the first half of fiscal year 2023, demonstrating investor interest in property assets despite a volatile global climate. The $2.7 billion in first-half inflows accounted for roughly 63% of the total $4.3 billion invested across the entire financial year.
In H1 FY27, the sector completed 30 transactions, up from 22 a year earlier. The average deal size grew by 18% to $91 million, signaling a trend towards larger investment commitments. Private equity firm ANAROCK Capital forecasts that total private equity inflows for the year could reach $4.8 billion, potentially the highest level in five years, provided second-half investments mirror those of the corresponding period in FY26.
The listing of a sixth real estate investment trust during the reporting period bolstered exit opportunities for private investors, potentially releasing capital for subsequent transactions and sustaining investment activity.
Domestic investors contributed $1.3 billion across 24 deals, making up 48% of total inflows. This marked an 18-fold increase from the $220 million recorded in H1 FY26. Foreign investors added around $1.4 billion through six transactions, representing a 19% year-on-year growth. ANAROCK Capital CEO Shobhit Agarwal noted that real estate alternative investment funds, family offices, and domestic institutions are increasingly equipped and confident to facilitate large transactions.
Agarwal expects investment momentum to continue due to robust office leasing, expanding data centre demand, and solid hotel performance. He believes investors are committing larger amounts, acquiring equity positions, and supporting businesses capable of expansion. The recovery suggests India is becoming an increasingly attractive long-term investment destination.
The burgeoning domestic participation alongside overseas capital forms a more diversified institutional investor base, while improved exit options could help stimulate fresh real estate deals.
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