India realty PE inflows rebound 23% in H1 FY27; data centres gain: Report

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Domestic investors deployed about $1.3 billion across 24 deals, nearly six times the $220 million invested in H1 FY26

By BL Bengaluru Bureau

Updated - October 16, 2026 at 12:25 AM. | Bengaluru

Office remained the largest asset class, attracting 35 per cent of inflows, broadly unchanged from 36 per cent in FY26. | Photo Credit: bluejayphoto

Private equity investment in Indian real estate has seen a recovery, with inflows rising 23 per cent year on year to $2.7 billion in H1 FY27 (April-September 2026), from $2.2 billion in the year-ago period, according to ANAROCK. The average deal size also rose 18 per cent to $91 million.

The half-year inflows already account for about 63 per cent of the $4.3 billion invested during the whole of FY26. Deal activity also broadened, with 30 transactions recorded in H1 FY27, compared with 22 a year earlier. “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,” said Shobhit Agarwal, CEO, ANAROCK Capital.

Domestic capital leads

The standout trend in H1 FY27 was the rise of domestic capital. Domestic investors deployed about $1.3 billion across 24 deals, nearly six times the $220 million invested in H1 FY26, accounting for 48 per cent of total inflows. Just two years ago, in FY25, their share stood at only 16 per cent.

Foreign investors, meanwhile, invested about $1.4 billion across six deals, up 19 per cent year on year. While domestic investors led in terms of deal count, foreign investors wrote significantly larger cheques, averaging about $238 million per deal, compared with about $54 million for domestic investors.

Office remained the largest asset class, attracting 35 per cent of inflows, broadly unchanged from 36 per cent in FY26. Data centres, however, jumped to 29 per cent of inflows from just 4 per cent in FY26, driven by large-ticket foreign platform investments.

Hospitality accounted for 12 per cent of inflows after recording no deals in the previous year. Residential attracted 14 per cent of inflows but led by deal count, with nearly 90 per cent of residential capital coming through structured debt for project completion. Industrial and logistics accounted for 6 per cet, while retail saw no PE deals during the half-year amid a shortage of new Grade A mall supply.

Published on October 6, 2026

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