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Anarock’s latest FLUX report placed private equity inflows into Indian real estate at $2.7 billion for H1 FY27, a 23 percent increase from the year-earlier period that already represented 63 percent of the $4.3 billion recorded for all of FY26. The consultancy described the first-half performance as the strongest since H1 FY23, coming despite ongoing geopolitical tensions and elevated global interest rates that had produced three prior years of moderating activity. Deal volume expanded to 30 transactions from 22 a year earlier while the average deal size grew 18 percent to $91 million.
The Anarock assessment found domestic investors deployed $1.3 billion across 24 deals in the period, nearly six times the $220 million recorded in H1 FY26 and lifting their share of total inflows to 48 percent from just 16 percent in FY25. Foreign capital contributed the remaining $1.4 billion through six transactions, a 19 percent year-on-year gain that produced an average deal size of roughly $238 million compared with $54 million for domestic participants. Pan-India and multi-city deals captured 49 percent of the capital, up sharply from 18 percent in FY26, with Bengaluru and Pune emerging as notable city-level destinations.
Office assets continued to lead sector allocations with a 35 percent share of the H1 FY27 total, little changed from 36 percent in the prior full year, as investors favoured completed and leased Grade A properties. Data centres recorded the largest shift, jumping to 29 percent of inflows from only 4 percent in FY26 on the back of several large-ticket foreign platform investments, the Anarock report showed. Hospitality attracted 12 percent after drawing no private equity deals in the comparable prior period.
Equity investments accounted for 83 percent of the total in the first half, the highest proportion since at least FY23, while the share of structured debt halved over the same span to 16 percent from 32 percent three years earlier. The Anarock document noted that this tilt toward ownership positions reflected greater investor conviction in scalable real estate platforms rather than lending structures. The listing of the Bagmane Prime Office REIT during the period also improved exit options for existing private investors and helped recycle capital into fresh commitments.
Anarock projected that matching H2 FY27 inflows to the prior year’s second-half pace would lift the full-year total to approximately $4.8 billion, potentially the highest annual figure in at least five years. Strong underlying office leasing, data centre demand and hotel performance are expected to sustain momentum through the remainder of the fiscal year. Shobhit Agarwal, CEO of ANAROCK Capital, said in the report that the first half of FY27 marks a clear turning point for private equity in Indian real estate, with investors committing larger cheques, taking equity positions and backing scalable platforms even against an uncertain global backdrop.
