Realty market sees $4.3 bn as deals broaden

Broader participation, domestic capital drive inflows

Property Pulse

India’s real estate capital markets staged a strong recovery in FY26, with total deal value rising to $4.3 billion, marking a 13 per cent increase over FY24 and 16 per cent over FY25, according to ANAROCK Capital’s FLUX FY26 Annual Edition. 

The year recorded 60 transactions, the highest in seven years, signalling a shift towards a broader and more active investment environment.

“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, noting that the market is deepening across deals, participants and asset classes.

Unlike previous years, FY26 saw a more balanced deal distribution. The largest transaction contributed just 9 per cent of total value, compared with 37 per cent in FY24 and 41 per cent in FY25, reflecting improved market depth.

The average deal size fell to $71 million, the lowest in seven years, indicating wider participation rather than reduced investor appetite.

Equity dominated investments, accounting for about 77 per cent of deal value, while debt made up the rest.

Commercial office led activity with $1.6 billion across 14 deals, supported by strong leasing demand from global capability centres. Domestic investors also increased their presence in this segment.

Retail real estate staged a comeback, contributing 9 per cent of total deal value. The acquisition of Kolkata’s South City Mall for $377 million marked the largest equity deal of the year, highlighting renewed investor interest in consumption-led assets.

Residential remained stable with 26 institutional transactions and an average deal size of around $25 million. Strong bank funding continues to provide developers with alternatives to private equity, though institutional capital remains active.

Industrial and logistics moderated to 10 per cent of deal activity after a strong previous year, though long-term investor interest remains intact.

A key trend is the rising role of domestic capital. Its share increased to 38 per cent, with investments reaching $1.642 billion, the highest in at least seven years, while foreign capital’s share declined to 52 per cent.

“One of the most consequential trends is the accelerating rise of domestic capital,” said Aashiesh Agarwaal, svp – investment advisory, ANAROCK Capital, attributing it to rising domestic wealth and improved market transparency.

Geographically, NCR led with a 23 per cent share, followed by MMR, Bengaluru and Chennai. The share of multi-city deals declined, indicating a more focused investment approach.

CAPITAL FLOW

• FY26 deal value rises to $4.3 billion. 

• 60 transactions mark seven-year high activity. 

• Largest deal contributes only 9% share. 

• Office leads with $1.6 billion investments. 

• Domestic capital rises to $1.642 billion. 

• Retail revival led by $377 million deal. 

 India’s real estate capital markets have moved from a period of concentration and caution to one of breadth and conviction.
Shobhit Agarwal

Chief executive officer 

ANAROCK Capital