India’s real estate sector attracted $2.7 billion in private equity (PE) investment during the first half of FY27, marking a 23% year-on-year increase from $2.2 billion in the corresponding period last year. According to ANAROCK Research & Advisory, this represents the strongest first-half investment performance since H1 FY23.
Office properties continued to attract the largest share of institutional capital, accounting for 35% of total inflows. However, data centres emerged as a major growth segment, increasing their share of investment from 4% in FY26 to 29% in H1 FY27. The hospitality sector also gained investor interest, accounting for 12% of inflows.
Domestic investors played a growing role, contributing approximately $1.3 billion, or 48% of total investments. Foreign investors contributed around $1.4 billion, representing the remaining 52%. The rise in domestic participation reflects increasing confidence in India’s property market.
Investment activity also expanded beyond traditional metropolitan markets. Multi-city and pan-India transactions accounted for 49% of total inflows. Bengaluru led individual city investments with a 17% share, followed by Pune at 11%. Mumbai Metropolitan Region accounted for 9%.
Investors increasingly preferred equity investments, which represented 83% of total inflows, indicating stronger interest in ownership stakes and long-term asset value.
Looking ahead, India’s real estate private equity investment could reach $4.8 billion in FY27 if second-half inflows match the corresponding period last year. Strong office leasing, rising data centre demand and healthy hospitality performance are expected to influence investment momentum in the coming months.
