Private Equity Investment in Indian Real Estate Falls 31% to $1.66 Billion in 2026

Private equity (PE) investment in Indian real estate declined 31% year-on-year to $1.66 billion during the first nine months of 2026, compared with $2.41 billion in the corresponding period of 2025, according to a report by Knight Frank India published on October 28.

Despite the decline in total investment value, the number of transactions increased from 24 to 31. The report attributed the lower overall value primarily to the absence of large-ticket transactions. The average disclosed deal size fell 47% to approximately $53 million.

Domestic investors account for a larger share

Domestic investors contributed 85% of PE investment during January–September 2026, compared with 25% in the same period a year earlier. The change indicates a substantial shift in the source of capital supporting property-sector transactions.

Office assets continue to attract capital

Office properties remained the largest asset class, attracting approximately $1.18 billion, or 71% of PE investment during the nine-month period. However, investment in the segment declined 19% year-on-year. Investors increasingly favoured completed office assets over projects with greater development risk.

Market Perspective

The fall in PE investment does not necessarily mean that property demand has collapsed. The number of transactions increased, while the average deal size declined, suggesting that the overall value was affected by fewer large investments. For developers, access to capital may depend increasingly on project quality, financial discipline and delivery certainty. Buyers should continue to assess individual projects on their own merits rather than treating a single investment indicator as a forecast of property prices.