PE Inflows into Indian Real Estate Rise 23% to $2.7 Billion in H1 FY27: Report

Private equity investment in Indian real estate rose 23 per cent year-on-year to $2.7 billion during the first half of FY27, covering April to September 2026, according to a report released on Tuesday.

The report by ANAROCK Capital said the inflows marked the strongest first-half performance since H1 FY23, with investment during the period already accounting for around 63 per cent of the $4.3 billion recorded across the whole of FY26.

A total of 30 transactions were recorded during H1 FY27, compared with 22 in the corresponding period a year earlier. The average deal size also increased by 18 per cent to $91 million.

If private equity inflows during the second half of FY27 match the investment recorded during the corresponding period of the previous financial year, total investment for the year could reach nearly $4.8 billion, which would be the highest level in at least five years.

The listing of a sixth real estate investment trust (REIT) during the first half of the financial year has also expanded the market and provided private investors with an additional exit route, potentially allowing capital to be recycled into new investments.

ANAROCK Capital CEO Shobhit Agarwal said strong office leasing activity, rising demand for data centres and healthy performance in the hospitality sector were expected to support continued institutional investment during the second half of the financial year.

Agarwal described the first half of FY27 as a significant shift for private equity in Indian real estate, saying investors were committing larger amounts, taking equity positions and backing platforms capable of scaling.

He also said the recovery had taken place despite an uncertain global economic environment, which he said indicated that India was increasingly being viewed as a core long-term investment market rather than simply an opportunistic destination for capital.

Domestic investors accounted for around $1.3 billion across 24 transactions during the first half, almost six times the $220 million invested in H1 FY26.

Domestic capital represented approximately 48 per cent of total private equity inflows during the period.

Foreign investors, meanwhile, invested around $1.4 billion across six transactions, representing a 19 per cent increase from the same period a year earlier.

According to Agarwal, real estate alternative investment funds, family offices and domestic institutional investors now have the scale and confidence to participate in larger transactions.

He said the growing involvement of these investors was adding to the depth of India's real estate investment market and contributing to the overall recovery in private equity activity.