PE inflows into Indian real estate rise 23 pc to $2.7 billion in April-September: Report

New Delhi: Private equity inflows into Indian real estate saw a strong recovery with a surging 23 per cent year‑on‑year to $2.7 billion in H1 FY27 (April–September 2026), marking the strongest first half since H1 FY23, a report said on Tuesday.

The report from ANAROCK Capital said the half‑year inflows already account for about 63 per cent of the $4.3 billion invested in the whole of FY26, with 30 transactions recorded in H1 FY27 versus 22 a year earlier and the average deal size up 18 per cent to $91 million.

The total PE investment in FY27 would reach nearly $4.8 billion, the highest in at least five years if H2 FY27 inflows match investments in corresponding period in the previous fiscal. 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,” said Shobhit Agarwal, CEO, ANAROCK Capital.

“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,” he said.

Agarwal noted that the recovery happened against an uncertain global backdrop which shows that India is now seen as a core, long-term allocation rather than an opportunistic bet.

Domestic investors deployed about $1.3 billion across 24 deals - nearly six times the $220 million invested in H1 FY26 - and accounted for 48 per cent of total inflows.

Foreign investors, meanwhile, invested about $1.4 billion across six deals, up 19 per cent year on year.

Real estate AIFs, family offices and domestic institutions have the scale and conviction to lead large transactions, said Aggarwal stressing that this growth is additive.

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