Private Equity Investments in Real Estate Surge to $4.3 Billion in FY26
NEW DELHI: Private equity investments in India’s real estate sector surged to $4.3 billion in FY26, marking a 16% increase over FY25 and the highest deal activity in seven years, according to a report by Anarock Capital.
A total of 60 transactions were recorded during the fiscal, up from 41 deals in FY25, indicating broader participation across investors and asset classes. The average deal size declined to about $71 million, reflecting a shift towards smaller, more distributed investments.
The largest transaction accounted for just 9% of total deal value in FY26, compared with significantly higher concentration levels in the previous two years.
Commercial office assets led investment activity, attracting $1.6 billion across 14 deals, supported by strong leasing demand, particularly from global capability centres. Retail assets saw a revival, contributing 9% of total deal value, aided by select large transactions.
Residential real estate accounted for 26 institutional deals, with average ticket sizes remaining stable, while industrial and logistics investments moderated to 10% of total deal value after a strong showing in the previous year.
Domestic capital inflows rose to $1.64 billion in FY26, the highest in at least seven years, with their share increasing to 38% of total investments. In contrast, foreign investors’ share declined to 52%, down from higher levels in earlier years.
Among cities, the National Capital Region led deal activity with a 23% share, followed by Mumbai Metropolitan Region (17%), Bengaluru (13%) and Chennai (9%).
