Private equity investments in Indian real estate rose 23% to $2.7 billion in H1 FY27, ANAROCK said. Domestic capital inflows drove this growth, accounting for nearly half of the total. Prashant Thakur said, "The growing depth of domestic capital is a key structural change." Office spaces remained the largest asset class.

Private equity investment in Indian real estate rose 23% year-on-year to $2.7 billion in H1 FY27, driven by strong domestic capital inflows and increasing equity deals, according to ANAROCK.

By Anshul

Private equity (PE) investment in Indian real estate rose 23% year-on-year to $2.7 billion in H1 FY27 (April-September), up from $2.2 billion a year earlier, according to ANAROCK.

The inflows were the highest for a first half since H1 FY23 and already account for around 63% of the $4.3 billion invested during the whole of FY26. Deal activity also increased, with 30 transactions in H1 FY27 compared with 22 a year earlier, while the average deal size rose 18% to $91 million.

Domestic capital accounted for nearly half of the total inflows. Domestic investors deployed around $1.3 billion across 24 deals, nearly six times the $220 million invested in H1 FY26. Their share of total PE investment rose to 48%, from 16% in FY25.

Foreign investors invested around $1.4 billion across six deals, up 19% year-on-year. Their average deal size was substantially higher at around $238 million, compared with $54 million for domestic investors.

Prashant Thakur, Executive Director and Head - Research & Advisory, ANAROCK Group, said the growing depth of domestic capital is a key structural change, with real estate AIFs, family offices and domestic institutions gaining the scale and conviction to participate in large transactions.

Manik Malik, CEO & President, BPTP Limited, said the continued growth in institutional capital flows reflects sustained investor confidence, while increased participation from domestic investors signals stronger conviction in the sector’s long-term prospects.

Equity accounted for 83% of PE inflows in H1 FY27, the highest share since at least FY23, compared with 77% in FY26. Structured debt accounted for 16%, down from 32% in FY23.

Sudeep Bhatt, Director-Strategy, Whiteland Corporation, said the rise in domestic investors’ share to 48% shows increasing participation of Indian capital and could provide greater stability to funding by reducing dependence on global cycles.

Office remained the largest asset class, accounting for 35% of inflows. Data centres saw their share jump to 29% from 4% in FY26, while hospitality accounted for 12% and residential 14%.

Shobhit Agarwal, CEO, ANAROCK Capital, said investors were increasingly committing larger cheques, taking equity positions and backing scalable platforms.

ANAROCK said that if H2 FY27 inflows match the year-ago period, total PE investment for FY27 could reach around $4.8 billion, the highest in at least five years.