NEW DELHI: Private equity (PE) investments in Indian real estate rose 23% year-on-year to $2.7 billion in the first half of FY27, from $2.2 billion in the corresponding period last year, according to the latest Flux report by Anarock. The inflows mark the strongest first-half performance since H1 FY23, despite geopolitical tensions and elevated global interest rates, the consultant said.
The $2.7-billion inflow in H1 FY27 was already equivalent to about 63% of the $4.3 billion invested during the whole of FY26. Deal activity also widened, with 30 transactions recorded during the six-month period against 22 a year earlier. The average deal size rose 18% to $91 million.
“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.
A key feature of the period was the sharp rise in domestic capital. 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 inflows rose to 48% from just 16% in FY25.
Foreign investors invested around $1.4 billion across six deals, a 19% increase from a year earlier. While domestic investors accounted for the bulk of transactions, foreign investors continued to write significantly larger cheques, with an average deal size of about $238 million compared with $54 million for domestic investors.
Office assets remained the biggest draw, accounting for 35% of total inflows, broadly in line with the 36% share in FY26. Investors continued to favour completed and leased Grade A office assets, attracted by their relatively stable rental income.
The biggest shift, however, came from new-age assets. Data centres accounted for 29% of PE inflows in H1 FY27, sharply up from 4% in FY26, driven by large-ticket investments by foreign investors in platforms.
Hospitality also emerged as a new area of interest, accounting for 12% of inflows after recording no PE deals in the previous year.
Residential assets attracted 14% of inflows and led in terms of deal count. Nearly 90% of residential capital came through structured debt aimed at project completion.
Industrial and logistics assets accounted for 6% of inflows, while retail recorded no PE deals during the first half, amid a shortage of new Grade A mall supply.
Source: The Financial Express
