Private Equity Investment in Indian Real Estate Rises 23% to $2.7 Billion
Private equity investment in Indian real estate reached $2.7 billion in the first half of FY27. That is a 23% increase from the $2.2 billion recorded during the same period last year, according to Anarock’s latest Flux report.
Deal activity also picked up. Investors closed 30 deals during the six months. There were 22 deals in H1 FY26. The average deal size rose 18% to $91 million.
Domestic investors increase their share
Domestic investors put around $1.3 billion into real estate during the period. The money went into 24 deals.
A year earlier, domestic investors had invested $220 million. Their share of total PE inflows has also increased. It reached 48%, compared with 16% in FY25.
Foreign investors invested about $1.4 billion. The capital came through six deals. This was 19% higher than the previous year.
The average deal size was much larger for foreign investors. It stood at around $238 million. For domestic investors, the average was about $54 million.
Office assets continued to attract the largest share of PE investment. They accounted for 35% of total inflows.
Investors continued to show interest in completed and leased Grade A office properties. The report linked this preference to the rental income generated by these assets.
Data centres saw a significant increase in their share of investment. They accounted for 29% of PE inflows in H1 FY27. In FY26, the share was 4%.
Hospitality also attracted investment during the period. It accounted for 12% of total inflows. The sector had recorded no PE deals in the previous year.
Residential real estate accounted for 14% of the total investment. It also recorded the highest number of deals among the asset classes covered in the report.
Nearly 90% of the capital invested in residential assets came through structured debt. The funding was aimed at project completion.
Industrial and logistics assets accounted for another 6% of the inflows. Retail did not record any PE deals during the period.
