Key Takeaways
- • PE investment in Indian real estate rose 23% year-on-year to USD 2.7 billion in H1 FY27 (April-September 2026), versus USD 2.2 billion in H1 FY26, according to ANAROCK's FLUX report; it was the strongest first half since H1 FY23.
- • MMR's share of PE real estate inflows fell to 9% from 17% in FY26, while pan-India and multi-city transactions rose to 49% of total inflows from 18%.
- • Domestic investors deployed around USD 1.3 billion across 24 deals, or 48% of inflows, nearly six times the USD 220 million recorded in H1 FY26.
- • Data centres surged to 29% of PE inflows from 4% in FY26, driven by large-ticket foreign platform investments, while office remained the largest asset class at 35%.
- • MMR and NCR together accounted for 16% of total inflows in H1 FY27, down from 40% in FY26.
Summary
Private equity investment in Indian real estate rose 23% year-on-year to USD 2.7 billion in the first half of FY27 (April-September 2026), compared with USD 2.2 billion in the corresponding period last year, according to the latest FLUX report from ANAROCK. The figure marks the strongest first-half performance since H1 FY23. Mumbai Metropolitan Region remained among the key destinations, but its share of overall inflows fell to 9% from 17% in FY26 as investors favoured broader pan-India and multi-city platforms.
The shift toward multi-city platforms was pronounced. Pan-India and multi-city transactions accounted for 49% of total PE inflows, up sharply from 18% in FY26. Bengaluru's share rose from 13% to 17% and Pune's increased from 6% to 11%, while NCR's share fell from 23% to 7%. MMR and NCR combined accounted for 16% of inflows, compared with 40% in FY26.
Domestic capital was a major driver of the growth. Domestic investors deployed around USD 1.3 billion across 24 deals, representing 48% of total inflows, against USD 220 million in H1 FY26. Foreign investors committed around USD 1.43 billion across six transactions, or 52% of inflows, a 19% year-on-year increase. ANAROCK said the rise in domestic capital does not signal foreign withdrawal, with the two sources operating alongside each other. Dr Prashant Thakur, Executive Director and Head - Research & Advisory at ANAROCK Group, said real estate AIFs, family offices and domestic institutions now have the scale to lead large transactions.
By asset class, office remained the largest at 35% of inflows, slightly below 36% in FY26. Data centres recorded the sharpest increase, rising to 29% from 4%, driven by large-ticket foreign platform investments. Residential accounted for 14% of capital and led in deal count, with nearly 90% of residential investment coming through structured debt for project completion. Hospitality, which recorded no PE deals in the prior year, took 12%, and industrial and logistics 6%. Shobhit Agarwal, CEO of ANAROCK Capital, said investors are committing larger cheques, taking equity positions and backing scalable platforms.
The shift toward multi-city platforms was pronounced. Pan-India and multi-city transactions accounted for 49% of total PE inflows, up sharply from 18% in FY26. Bengaluru's share rose from 13% to 17% and Pune's increased from 6% to 11%, while NCR's share fell from 23% to 7%. MMR and NCR combined accounted for 16% of inflows, compared with 40% in FY26.
Domestic capital was a major driver of the growth. Domestic investors deployed around USD 1.3 billion across 24 deals, representing 48% of total inflows, against USD 220 million in H1 FY26. Foreign investors committed around USD 1.43 billion across six transactions, or 52% of inflows, a 19% year-on-year increase. ANAROCK said the rise in domestic capital does not signal foreign withdrawal, with the two sources operating alongside each other. Dr Prashant Thakur, Executive Director and Head - Research & Advisory at ANAROCK Group, said real estate AIFs, family offices and domestic institutions now have the scale to lead large transactions.
By asset class, office remained the largest at 35% of inflows, slightly below 36% in FY26. Data centres recorded the sharpest increase, rising to 29% from 4%, driven by large-ticket foreign platform investments. Residential accounted for 14% of capital and led in deal count, with nearly 90% of residential investment coming through structured debt for project completion. Hospitality, which recorded no PE deals in the prior year, took 12%, and industrial and logistics 6%. Shobhit Agarwal, CEO of ANAROCK Capital, said investors are committing larger cheques, taking equity positions and backing scalable platforms.
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