PE Inflows into Indian Real Estate Rise 23% to USD 2.7 Bn in H1 FY27Domestic Investors Account for 48% of Capital
| Strongest first half since H1 FY23: PE inflows into Indian real estate rose 23% YoY to USD 2.7 Bn in H1 FY27, from USD 2.2 Bn in H1 FY26, the highest first-half total since H1 FY23. | Domestic capital surges: Domestic investors deployed about USD 1.3 Bn, nearly six times the level a year ago, taking their share to 48%, the highest since at least FY23. |
| Foreign capital holds steady: Foreign investors put in about USD 1.4 Bn, up 19% YoY, through fewer but larger deals averaging about USD 238 Mn each. | Bigger and more deals: Deal count rose 36% YoY to 30, while average deal size rose 18% to USD 91 Mn. |
| Equity dominates: Equity made up 83% of inflows, the highest since at least FY23, while structured debt fell to 16%. | New-age assets lead the shift: Data centres (29%) and hospitality (12%) together took over 40% of inflows, while office remained the single largest asset class at 35%. |
Mumbai, 6 October 2026: Private equity (PE) investment in Indian real estate has staged a strong recovery, with inflows rising 23% year on year to USD 2.7 Bn in H1 FY27 (April to September 2026), up from USD 2.2 Bn in the same period last year, according to the latest FLUX report by Anarock. This is the strongest first half since H1 FY23 and follows three years of easing, despite continued geopolitical tensions and high global interest rates.
The half-year inflows already account for about 63% of the USD 4.3 Bn invested in the whole of FY26. Deal activity was also broader, with 30 transactions recorded in H1 FY27 against 22 a year earlier, while the average deal size rose 18% to USD 91 Mn.
“The first half of FY27 marks a clear turning point for private equity in Indian real estate. Investors are no longer just testing the waters; they are committing larger cheques, taking equity positions, and backing scalable platforms. The fact that this has happened against an uncertain global backdrop shows that India is now seen as a core, long-term allocation rather than an opportunistic bet,” says Shobhit Agarwal, CEO, ANAROCK Capital.
Domestic capital – the second engine
The standout trend of H1 FY27 is the rise of domestic capital. Domestic investors deployed about USD 1.3 Bn across 24 deals – nearly six times the USD 220 Mn invested in H1 FY26 – and accounted for 48% of total inflows. Just two years ago, in FY25, their share stood at only 16%.
Foreign investors, meanwhile, invested about USD 1.4 Bn across six deals, up 19% year on year. While domestic investors led by number of deals, foreign investors wrote far larger cheques, averaging about USD 238 Mn per deal compared with about USD 54 Mn for domestic investors.
PE Inflows by Investor Source, H1 FY27
| Investor Source | No. of Deals | Amount (USD Bn) | Share | Avg. Deal Size (USD Mn) | YoY Change |
| Foreign | 6 | 1.43 | 52% | 238 | +19% |
| Domestic | 24 | 1.30 | 48% | 54 | ~6x |
| Total | 30 | 2.72 | 100% | 91 | +23% |
“The depth of domestic capital is the biggest structural change we are seeing. Real estate AIFs, family offices and domestic institutions now have the scale and conviction to lead large transactions. Importantly, this growth is additive. Foreign capital has not retreated; domestic money has simply added a strong new layer of funding, which makes the market far more resilient to global shocks,” adds Shobhit Agarwal.
Data centres & Hospitality gain ground, Office leads
| Office remained the largest asset class, attracting 35% of inflows, almost unchanged from 36% in FY26, as investors continued to buy completed, leased Grade A assets for stable rental income. | The sharpest shift came from new-age assets – data centres jumped to 29% of inflows from just 4% in FY26, driven by large-ticket foreign platform investments. Hospitality took 12% after recording no deals in the previous year. | Residential took 14% of inflows but led by deal count, with nearly 90% of residential capital coming through structured debt for project completion. Industrial & logistics took 6%, while retail saw no PE deals in the half due to a shortage of new Grade A mall supply. |
Asset Class-wise Share of PE Inflows
| Asset Class | FY26 | H1 FY27 |
| Office | 36% | 35% |
| Data Centres | 4% | 29% |
| Residential | 17% | 14% |
| Hospitality | 0% | 12% |
| Industrial & Logistics | 10% | 6% |
| Mixed Use | 22% | 4% |
| Retail | 9% | 0% |
Source: ANAROCK Research & Advisory
Multi-city platforms take nearly half of all capital
Investors increasingly backed platforms spanning several cities rather than single assets. Pan-India and multi-city deals took 49% of inflows in H1 FY27, up from 18% in FY26.
Among individual cities, Bengaluru led with 17%, up from 13%, while Pune nearly doubled its share to 11%. NCR and MMR, which together took 40% of inflows in FY26, saw their combined share fall to 16%.
City-wise Share of PE Inflows
| City | FY26 | H1 FY27 |
| Pan India / Multi-City | 18% | 49% |
| Bengaluru | 13% | 17% |
| Pune | 6% | 11% |
| MMR | 17% | 9% |
| NCR | 23% | 7% |
| Chennai | 9% | 6% |
| Hyderabad | 1% | 1% |
| Kolkata | 9% | 0% |
| Others | 4% | 0% |
Equity share at its highest since FY23
Investor risk appetite has clearly improved. Equity made up 83% of PE inflows in H1 FY27, the highest since at least FY23, up from 77% in FY26 and 68% in FY23. Structured debt share has halved over the same period, from 32% in FY23 to 16%, showing that investors are increasingly willing to take ownership positions rather than lend against projects.
Outlook
If H2 FY27 inflows simply match those of H2 FY26, total PE investment in FY27 would reach about USD 4.8 Bn, the highest in at least five years. The listing of a sixth REIT during the half has also deepened the market, giving private investors a stronger exit route and freeing up capital for fresh deals.
“We expect the momentum to continue into the second half. Strong office leasing, rising demand for data centres and healthy hotel performance will keep institutional capital flowing. The key factor to watch is whether domestic investors can sustain more than USD 1 Bn every half. If they do, FY27 could well become a record year for private equity in Indian real estate,” concludes Agarwal.
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing)
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