From Data Centres to Bengaluru & Pune: 8 key trends behind $2.7 billion investment in Indian real estate in H1 FY27

Private equity inflows rise 23% year on year
Private equity investment in Indian real estate rose to $2.7 billion in April–September 2026, up from $2.2 billion a year earlier. It was the strongest first half since H1 FY23.
The surge signals renewed investor interest, with domestic capital rising sharply and data centres emerging as a major investment destination.

Indian capital is becoming a major force
Domestic investors deployed around $1.3 billion across 24 deals, nearly six times the $220 million invested in H1 FY26.
Their share of total inflows jumped from 16% in FY25 to 48% in H1 FY27. Real estate funds, family offices and domestic institutions are becoming increasingly important sources of property investment.

$1.4 billion invested across six deals
Foreign investors contributed around $1.43 billion, accounting for 52% of total inflows and recording 19% year-on-year growth.
Their average deal size was approximately $238 million, compared with $54 million for domestic investors.
Domestic capital is widening the funding base, while foreign investors continue to support large-ticket transactions.

New-age assets gain ground
Data centres accounted for 29% of real estate PE inflows in H1 FY27, up from just 4% in FY26. Large investments in data-centre platforms helped drive the increase.
Hospitality also gained ground, capturing 12% of inflows after recording no PE deals in FY26.
Together, these two segments attracted 41% of the capital, signalling growing interest in newer real estate opportunities.

35% of PE inflows go into office assets
Office assets retained the top spot, accounting for 35% of inflows, close to their 36% share in FY26. Investors continued to favour completed, leased Grade A buildings that generate rental income.
Residential properties received 14% of inflows, with nearly 90% of residential capital coming through structured debt for project completion. Industrial and logistics assets attracted 6%, while retail recorded no PE deals during the half.

Pan-India and multi-city deals account for 49%
Pan-India and multi-city platforms accounted for 49% of PE inflows, up from 18% in FY26.
Bengaluru's share rose to 17%, while Pune's increased to 11%. In contrast, Mumbai Metropolitan Region (MMR) accounted for 9% and the National Capital Region (NCR) for 7%.
Investors are increasingly backing property platforms operating across multiple cities rather than focusing only on individual assets.

Investors show a stronger preference for ownership
Equity accounted for 83% of inflows in H1 FY27, compared with 77% in FY26 and 68% in FY23.
Meanwhile, structured debt's share fell to 16% from 32% in FY23. This points to a greater preference for ownership stakes rather than lending alone.
Deal activity also strengthened, with transactions rising 36% to 30 and average deal size increasing 18% to $91 million.

A potential five-year high
If investment in the second half matches H2 FY26, full-year PE inflows could reach approximately $4.8 billion, potentially the highest in at least five years.
Strong office leasing, rising data-centre demand, hotel performance and sustained domestic investment will be key factors to watch.
The big question: Can domestic investors continue deploying more than $1 billion every half-year?
Source: ANAROCK Research & Advisory, FLUX Report, H1 FY27 (April–September 2026).