NEW DELHI: In FY26, private equity investments in India’s real estate sector reached $4.3 billion, marking a 16% rise from FY25 and the highest level of activity in seven years, according to Anarock Capital’s report.
During this fiscal year, 60 transactions were recorded, up from 41 in FY25, indicating a wider range of participation among investors and asset classes. The average deal size reduced to approximately $71 million, signaling a trend towards smaller, more diversified investments.
The largest transaction made up only 9% of the overall deal value in FY26, a significant change from higher concentrations seen in the previous two years.
Commercial office assets topped investment activity, drawing in $1.6 billion across 14 deals, boosted by robust leasing demand from global capability centers. Retail assets saw a resurgence, contributing 9% to the total deal value, supported by a few major transactions.
Residential real estate accounted for 26 institutional deals, with average ticket sizes remaining stable, while investments in industrial and logistics sectors moderated to 10% of total deal value, following a strong performance the previous year.
Domestic capital inflows surged to $1.64 billion in FY26, the highest in seven years, making up 38% of total investments. Conversely, the share of foreign investors dropped to 52%, down from higher percentages in prior years.
Notably, the National Capital Region led the deal activity with a 23% stake, followed by the Mumbai Metropolitan Region (17%), Bengaluru (13%), and Chennai (9%).
