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Private Equity Investments in Real Estate Rise to $4.3 Billion in FY26, Highest in 7 Years

  • by- Grihik
  • Apr 9, 2026
Private equity investments in India's real estate sector rose to $4.3 billion in FY26, marking a 16 per cent increase over FY25 and the highest deal activity in seven years, according to a report by Anarock Capital.
Private Equity Investments in Real Estate Rise to $4.3 Billion in FY26, Highest in 7 Years

New Delhi, April 9: A total of 60 transactions were recorded during the fiscal, up from 41 deals in FY25, indicating broader participation across investors and asset classes.

Key Highlights

  • Total PE investment: $4.3 billion (up 16% YoY)

  • Number of deals: 60 (up from 41)

  • Average deal size: ~$71 million (declined, reflecting shift to smaller investments)

  • Largest transaction share: Just 9% of total deal value (vs higher concentration in previous years)

Asset Class Performance

Asset Class Share
Commercial office Leading ($1.6 billion across 14 deals)
Residential 26 institutional deals
Retail 9% of total deal value
Industrial & Logistics       10% of total deal value

Investor Mix

  • Domestic capital inflows: $1.64 billion (highest in 7 years; 38% share)

  • Foreign investors: 52% share (declined from higher levels in earlier years)

City-Wise Deal Activity

  • National Capital Region (NCR): 23% share (led among cities)

  • Mumbai Metropolitan Region (MMR): 17%

  • Bengaluru: 13%

  • Chennai: 9%

Driver for Commercial Office

Commercial office assets attracted strong investment supported by robust leasing demand, particularly from Global Capability Centres (GCCs) .