India's real estate records PE deals worth $4.3 billion in FY26: Anarock

Private equity investments rebound after two subdued years, with equity-led deals and rising domestic participation signalling improved depth in real estate capital markets

Equity investments accounted for 77 per cent of total deal value, while debt made up the remaining 23 per cent, with no hybrid deals during the year

Prachi Pisal Mumbai

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India’s real estate capital markets rebounded in FY26 after two subdued years, with 60 private equity (PE) deals worth $4.3 billion, returning investment levels to those last seen in FY22, according to Anarock.

Deal value rose 13 per cent over FY24 ($3.8 billion) and 16 per cent over FY25 ($3.7 billion), while the number of transactions increased to 60, the highest in seven years, from 41 deals in FY25 and 51 in FY24. Investments had stood at $4.3 billion in FY22 and $4.4 billion in FY23.

“India’s real estate capital markets have moved from a period of concentration and caution to one of breadth and conviction,” said Shobhit Agarwal, chief executive officer, Anarock Capital. He noted that, unlike FY24 and FY25—when a single large transaction accounted for 37 per cent and 41 per cent of deal value—the largest deal in FY26 contributed only 9 per cent, reflecting improved market depth.

Equity investments accounted for 77 per cent of total deal value, while debt made up the remaining 23 per cent, with no hybrid deals during the year.

The office segment led activity with 14 deals totalling $1.6 billion, supported by strong leasing demand from Global Capability Centres (GCCs). Domestic investors also increased participation in a segment traditionally dominated by foreign capital.

Retail real estate contributed 9 per cent of total deal value, led by Blackstone’s acquisition of South City Mall for $377 million, the largest deal of the year.

The residential segment recorded 26 institutional transactions, with average deal sizes steady at $25 million, even as strong bank lending continued to provide developers with an alternative funding route.

Investment in industrial and logistics moderated to 10 per cent from 47 per cent in FY25, though investor interest remained supported by e-commerce-led demand.

Domestic capital continued to gain share, said Aashiesh Agarwaal, senior vice-president, investment advisory, Anarock Capital. Foreign investors’ share declined from 82 per cent in FY22 to 52 per cent in FY26, while domestic investors’ share rose to 38 per cent, with investments touching $1.64 billion, the highest in at least seven years.

At the city level, NCR led with a 23 per cent share, followed by Mumbai Metropolitan Region (17 per cent), Bengaluru (13 per cent) and Chennai (9 per cent).

Additionally, 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, highlighting the evolution of investor strategies beyond traditional residential and commercial plays.

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First Published: Apr 09 2026 | 3:00 PM IST