60 PE Deals Account for USD 4.3 Bn and a 7-Year High, Domestic Capital Hits Multi-Year Peak – ANAROCK Capital
- FY26 deal value hit USD 4.3 billion, up 13% vs FY24 and 16% vs FY25.
- 60 transactions were recorded in FY26, the highest in seven years.
- The largest deal contributed just 9% of total activity, showing far broader market participation than FY24/FY25.
- Domestic capital rose to USD 1.642 billion, the highest in at least seven years; foreign capital share fell to 52%.
- Commercial office led the market with USD 1.6 billion across 14 deals, while retail made a comeback with 9% of FY26 deal value
Mumbai, 9 April 2026: India's real estate capital markets witnessed a decisive recovery in FY26, shaking off two years of subdued activity to reclaim levels last seen in FY22. According to ANAROCK Capital's FLUX FY26 Annual Edition, the sector recorded total deal value of USD 4.3 billion — a 13% and 16% rise over FY24 and FY25, respectively — with the uptick underpinned by a far healthier, broad-based deal environment than in previous years.
"India's real estate capital markets have moved from a period of concentration and caution to one of breadth and conviction," said Shobhit Agarwal, CEO – ANAROCK Capital. "FLUX FY26 captures a market that is deepening — more deals, more participants, more asset classes — even as it navigates a complex global backdrop.”
Agarwal adds – “FY26's recovery is especially significant for its quality. Unlike FY24 and FY25 - where a single mega-transaction (Brookfield RE Trust/GIC and RIL/ADIA/KKR, respectively) accounted for 37% and 41% of total deal value - the largest deal in FY26 contributed just 9% of total activity. This marks a structural improvement in market depth, with capital flows distributed more evenly across geographies, sectors, and asset classes.”
Deal Volume at a 7-Year Peak
The number of transactions rose to 60 in FY26, the highest in seven years and up sharply from 41 deals in FY25. Average deal size, at USD 71 million, was the lowest in the same period — a reflection not of declining appetite, but of wider market participation with more players transacting across a broader ticket-size spectrum.
Equity Dominates; Office Sees a Strong Comeback
Equity continued to be the preferred deal structure, accounting for approximately 77% of total deal value in FY26 — consistent with the long-term norm and a sharp reversal from FY25, when a single large hybrid transaction distorted the mix. Debt accounted for 23%, with no hybrid deals recorded during the year,
Sector-wise Performance
Commercial office emerged as the standout performer, with 14 transactions aggregating USD 1.6 billion at an average deal size of ~USD 116 million — up from ~USD 80 million across 12 transactions in FY25. Robust office absorption led by Global Capability Centres (GCCs) continued to underpin investor confidence in this segment. Notably, domestic investors made meaningful inroads into commercial real estate, a segment historically dominated by international capital.
Retail real estate staged a notable comeback after being virtually absent in FY24 and FY25, contributing 9% of deal value in FY26. Blackstone's acquisition of Kolkata's South City Mall for USD 377 million — the single largest equity deal of the year — anchored activity in this segment, signalling renewed institutional appetite for quality retail assets backed by India's strong consumption growth.
Residential saw 26 institutional transactions, broadly in line with prior years, with average deal size remaining stable at ~USD 25 million. Strong banking sector support — evidenced by high-teen growth in outstanding credit — continues to provide developers with a more cost-effective funding alternative to private equity. Nevertheless, institutional platforms remained active, particularly for established and credible developers.
Industrial & Logistics, after commanding 47% of deal activity in FY25, moderated to 10% in FY26, though underlying investor interest remains firm, driven by e-commerce-led demand and the rapid evolution of warehouses into tech-enabled fulfilment hubs.
Domestic Capital at a Multi-Year High
Aashiesh Agarwaal, SVP - Investment Advisory, ANAROCK Capital, said, “One of the most consequential trends is the accelerating rise of domestic capital. Foreign investors' share of total deal value fell from 82% in FY22 to 52% in FY26, while domestic investors' share rose from 15% to 38% over the same period — with domestic capital in absolute terms reaching USD 1,642 million, the highest in at least seven years. Rising domestic prosperity, improved market transparency, and growing local conviction in real estate as an asset class are driving this shift.”
Geography: NCR Leads, Pan-India Deals Decline
NCR led city-level deal activity in FY26 with a 23% share, followed by MMR (17%), Bengaluru (13%), and Chennai (9%). Kolkata, buoyed by the South City Mall acquisition, jumped from 0% in FY25 to 9% in FY26. The share of Pan-India/multi-city deals fell sharply from 50% in FY25 to 18% in FY26, reflecting a more city-specific capital deployment strategy across investors.
Platform Deals Open Fresh Frontiers
Platform investing remained a defining feature of FY26, with HDFC Capital participating in half of all platform transactions — backing Eldeco (USD 174 Mn), Hero Realty (USD 112 Mn), and Curated Living Solutions for rental housing (USD 109 Mn). 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.
