India's Real Estate Market Rebounds with $4.3 Billion in PE Deals in FY26
India’s real estate capital markets saw a strong recovery in FY26, with 60 private equity (PE) deals amounting to $4.3 billion. This resurgence brings investment levels back to those last seen in FY22, according to Anarock, a leading real estate consultancy firm.
Deal value increased by 13% over FY24 ($3.8 billion) and 16% over FY25 ($3.7 billion). The number of transactions reached 60, the highest in seven years, up from 41 deals in FY25 and 51 in FY24. Investments had previously stood at $4.3 billion in FY22 and $4.4 billion in FY23.
Shobhit Agarwal, CEO of Anarock Capital, commented, “India’s real estate capital markets have moved from a period of concentration and caution to one of breadth and conviction.” Unlike the previous years, where a single large transaction accounted for a significant portion of the deal value, the largest deal in FY26 contributed only 9%, indicating a more balanced and diverse market.
Equity investments dominated, accounting for 77% of the total deal value, while debt made up the remaining 23%. There were no hybrid deals during the year. The office segment led the activity with 14 deals totaling $1.6 billion, driven by strong leasing demand from Global Capability Centres (GCCs). Notably, domestic investors increased their participation in a segment traditionally dominated by foreign capital.
Retail real estate contributed 9% of the total deal value, highlighted by Blackstone’s acquisition of South City Mall for $377 million, which was the largest deal of the year. The residential segment saw 26 institutional transactions with average deal sizes steady at $25 million, despite strong bank lending providing developers with alternative funding routes.
Investment in the industrial and logistics sector moderated to 10% from 47% in FY25, although investor interest remained strong, supported by e-commerce-led demand. Aashiesh Agarwaal, Senior Vice President of Investment Advisory at Anarock Capital, noted that domestic capital continued to gain share. The share of foreign investors declined from 82% in FY22 to 52% in FY26, while domestic investors’ share rose to 38%, reaching $1.64 billion, the highest in at least seven years.
At the city level, the National Capital Region (NCR) led with a 23% share, followed by the Mumbai Metropolitan Region (17%), Bengaluru (13%), and Chennai (9%). HDFC Capital remained active in platform investments in FY26, backing Eldeco ($174 million), Hero Realty ($112 million), and Curated Living Solutions for rental housing ($109 million).
The year also saw the emergence of differentiated platforms in rental housing and luxury second homes, reflecting the evolution of investor strategies beyond traditional residential and commercial plays.
