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The $2.7-billion inflow during the first six months of FY27 is already equivalent to around 63% of the $4.3 billion invested during the whole of FY26.
Domestic investors deployed around $1.3 billion across 24 deals in H1 FY27, nearly six times the $220 million invested during the same period last year.
Private equity investment in Indian real estate rose 23% year-on-year to $2.7 billion in the first half of FY27, signalling a strong recovery in investor interest in the sector, according to the latest FLUX report by ANAROCK.
PE inflows stood at $2.2 billion in the April-September period of FY26. The latest figure makes H1 FY27 the strongest first half for real estate private equity investment since H1 FY23.
The recovery has come despite geopolitical uncertainties and elevated global interest rates. The $2.7-billion inflow during the first six months of FY27 is already equivalent to around 63% of the $4.3 billion invested during the whole of FY26.
Deal activity also picked up. The number of PE transactions increased to 30 in H1 FY27 from 22 in the year-ago period, while the average deal size rose 18% to $91 million.
Domestic Investors Emerge As A Major Source Of Capital
One of the biggest changes in the Indian real estate investment landscape has been the sharp rise in domestic capital. Domestic investors deployed around $1.3 billion across 24 deals in H1 FY27, nearly six times the $220 million invested during the same period last year. Their share of total PE inflows rose to 48%, compared with just 16% in FY25.
Foreign investors continued to provide significant capital, investing around $1.4 billion through six deals. Their investment was up 19% year-on-year.
However, there was a significant difference in the size of cheques written by domestic and foreign investors. Foreign investors invested an average of around $238 million per deal, compared with about $54 million for domestic investors.
Shobhit Agarwal, CEO of ANAROCK Capital, said, “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.”
Equity Dominates PE Investment
The nature of investments also changed during the period. Equity accounted for 83% of total PE inflows in H1 FY27, the highest level since at least FY23. At the same time, structured debt accounted for 16% of inflows, indicating a stronger preference among investors for equity exposure to Indian real estate.
The rise in domestic capital has been particularly significant, with real estate AIFs, family offices and domestic institutions emerging as important sources of funding.
According to ANAROCK, domestic capital is increasingly complementing foreign investment rather than replacing it. Foreign capital has remained resilient, while domestic investors have added another layer of funding to the market.
Data Centres, Hospitality Attract More Investor Interest
Office assets remained the biggest recipient of PE money, accounting for 35% of total inflows in H1 FY27. This was broadly unchanged from the 36% share in FY26. Investors continued to favour completed and leased Grade A office assets, which offer relatively stable rental income.
However, the biggest shift was seen in data centres. Data centres accounted for 29% of PE inflows in H1 FY27, sharply up from just 4% in FY26. The increase was driven by large-ticket investments by foreign platforms.
Hospitality also emerged as a key asset class, accounting for 12% of inflows after receiving no PE investment in the previous year.
Residential real estate attracted 14% of total inflows. It remained the leading asset class in terms of the number of deals, although nearly 90% of residential capital came through structured debt for project completion.
Industrial and logistics assets accounted for 6% of inflows, while retail received no PE investment during the first half, which ANAROCK attributed to a shortage of new Grade A mall supply.
Multi-City Real Estate Platforms Gain Favour
Investors are increasingly showing a preference for platforms operating across multiple cities instead of investing in individual assets. Pan-India and multi-city deals accounted for 49% of total PE inflows in H1 FY27, compared with 18% in FY26.
Among individual cities, Bengaluru was the biggest recipient, accounting for 17% of total inflows, up from 13% in FY26. Pune’s share nearly doubled to 11%.
Meanwhile, Delhi-NCR and Mumbai Metropolitan Region (MMR), which together accounted for 40% of PE inflows in FY26, saw their combined share decline to 16% in H1 FY27.
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Ask News18Private equity investment in Indian real estate rose 23% year-on-year to reach $2.7 billion in the first half of FY27, which marks the strongest first half for real estate PE investment since H1 FY23.
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Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
October 06, 2026, 13:51 IST
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