The Indian real estate sector has marked a significant milestone in the first half of the financial year 2026-27 (H1 FY27). According to the latest **FLUX report by Anarock**, private equity (PE) inflows into the sector have staged a robust recovery, rising 23% year-on-year to reach $2.7 billion. This is a substantial leap from the $2.2 billion recorded during the same period last year and represents the strongest first-half performance since H1 FY23.
At **Business Promotion24**, we closely monitor these market shifts to keep our readers informed about the evolving investment landscape. Despite global geopolitical tensions and high interest rates, the Indian real estate market has proven its resilience, with H1 FY27 inflows already accounting for 63% of the total $4.3 billion invested in the entirety of FY26.
### **Broadening Horizons and Rising Deal Sizes**
The report highlights not just a rise in volume but also in deal activity. A total of 30 transactions were recorded in H1 FY27, compared to 22 in the previous year. Furthermore, the average deal size witnessed an 18% increase, now standing at $91 million.
**Shobhit Agarwal, CEO of Anarock Capital**, noted: *“The first half of FY27 marks a clear turning point. Investors are no longer just testing the waters; they are committing larger cheques, taking equity positions, and backing scalable platforms. India is now seen as a core, long-term allocation.”*
### **The Rise of Domestic Capital**
Perhaps the most structural shift observed by **Business Promotion24** is the surge in domestic capital. Domestic investors deployed approximately $1.3 billion across 24 deals—nearly six times the amount invested in H1 FY26. Domestic capital now accounts for 48% of total inflows, a massive jump from just 16% in FY25.
While foreign investors continue to write larger cheques (averaging $238 million per deal), the depth provided by domestic AIFs, family offices, and institutions makes the Indian market far more resilient to global shocks.
### **Asset Class Performance: Data Centres and Office Leading**
* **Office Space:** Remained the top choice, attracting 35% of inflows as investors sought stable rental income from Grade A assets.
* **Data Centres:** This emerging sector saw a meteoric rise, jumping to 29% of inflows from a mere 4% in FY26.
* **Hospitality:** Made a strong comeback, capturing 12% of the share after a silent previous year.
* **Residential:** Accounted for 14% of inflows, primarily through structured debt for project completion.
### **Geographic Trends: The Shift to Multi-City Platforms**
Investors are increasingly favoring diversification. Pan-India and multi-city platform deals captured 49% of inflows. Among individual cities, Bengaluru led the charts with 17%, followed by Pune, which doubled its share to 11%.
—
### **Real Estate Legal Corner: Expert Insights**
As part of our commitment at **Business Promotion24** to provide holistic real estate news, we address two common legal queries:
**1. Can NRIs invest in agricultural land in India?**
Under FEMA (2000) regulations, NRIs cannot directly purchase agricultural land. However, they may acquire it through inheritance or as a gift from a resident Indian relative. Special RBI approval is required in other limited cases.
**2. What if I bought an apartment from a seller who doesn’t fully own it?**
If a property is sold by someone without absolute ownership (e.g., a co-owner), you cannot claim exclusive possession. You should issue a legal notice to the co-owners. Under the Code of Civil Procedure (Order 39 Rules 1 and 2), a civil court can grant an injunction to restrain any further sale or dispute.
For the latest updates on real estate trends and investment opportunities, stay tuned to **Business Promotion24**.
