This is the strongest first half since H1 FY23 and follows three years of easing, despite continued geopolitical tensions and high global interest rates, the report said.
The half-year inflows already account for about 63 per cent of the USD 4.3 billion invested in the whole of FY26. Deal activity was also broader, with 30 transactions recorded in first half of FY27 against 22 a year earlier, while the average deal size rose 18 per cent to USD 91 million, it added.
The standout trend of first half of FY27 is the rise of domestic capital. Domestic investors deployed about USD 1.3 billion across 24 deals – nearly six times the USD 220 million invested in H1 FY26 – and accounted for 48 per cent of total inflows. Just two years ago, in FY25, their share stood at only 16 per cent, the report said.
Foreign investors, meanwhile, invested about USD 1.4 billion across six deals, up 19 per cent year on year. While domestic investors led by number of deals, foreign investors wrote far larger cheques, averaging about USD 238 million per deal compared with about USD 54 million for domestic investors, it said.
Office remained the largest asset class, attracting 35 per cent of inflows, almost unchanged from 36 per cent in FY26, as investors continued to buy completed, leased Grade A assets for stable rental income, Anarock said.
The sharpest shift came from new-age assets – data centres jumped to 29 per cent of inflows from just 4 per cent in FY26, driven by large-ticket foreign platform investments. Hospitality took 12 per cent after recording no deals in the previous year it said.
Residential took 14 per cent of inflows but led by deal count, with nearly 90 per cent of residential capital coming through structured debt for project completion. Industrial & logistics took 6 per cent, while retail saw no PE deals in the half due to a shortage of new Grade A mall supply, the report said.
Pan-India and multi-city deals took 49 per cent of inflows in first half of FY27, up from 18 per cent in FY26.
Among individual cities, Bengaluru led with 17 per cent, up from 13 per cent, while Pune nearly doubled its share to 11 per cent. NCR and MMR, which together took 40 per cent of inflows in FY26, saw their combined share fall to 16 per cent in first half of FY27, as per the report.
Equity made up 83 per cent of private equity inflows in H1 FY27, the highest since at least FY23, up from 77 per cent in FY26 and 68 per cent in FY23. Structured debt share has halved over the same period, from 32 per cent in FY23 to 16 per cent, showing that investors are increasingly willing to take ownership positions rather than lend against projects, it added.
“Investors are no longer just testing the waters; they are committing larger cheques, taking equity positions, and backing scalable platforms. The fact that this has happened against an uncertain global backdrop shows that India is now seen as a core, long-term allocation rather than an opportunistic bet,” Shobhit Agarwal, CEO, ANAROCK Capital, said in a statement.
If the second half FY27 inflows simply match those of H2 FY26, total PE investment in FY27 would reach about USD 4.8 billion, the highest in at least five years, the report said.
“We expect the momentum to continue into the second half. Strong office leasing, rising demand for data centres and healthy hotel performance will keep institutional capital flowing. The key factor to watch is whether domestic investors can sustain more than USD 1 billion every half. If they do, FY27 could well become a record year for private equity in Indian real estate,” Agarwal noted.