India’s real estate capital markets staged a strong recovery in FLUX FY26, with total deal value reaching USD 4.3 billion, marking a 13% increase over FY24 and a 16% rise over FY25, according to ANAROCK Capital’s FLUX FY26 Annual Edition.
The performance in FLUX FY26 reflects a decisive shift towards a broader, more diversified investment landscape after two years of subdued activity.
The FLUX FY26 report highlights that 60 transactions were recorded during the year—the highest in seven years—indicating a sharp rebound in deal momentum.
Unlike previous years, where a single large transaction dominated activity, FLUX FY26 saw the largest deal contributing only 9% of total value, underscoring improved market depth and distributed capital flows.
Shobhit Agarwal, CEO – ANAROCK Capital, said, “India’s real estate capital markets have moved from a period of concentration and caution to one of breadth and conviction. FLUX FY26 captures a market that is deepening — more deals, more participants, more asset classes — even as it navigates a complex global backdrop.”
He further added, “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 FLUX 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.”
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Deal Volume Hits 7-Year High in FLUX FY26
The number of transactions in FLUX FY26 rose to 60, compared to 41 deals in FY25, marking the highest deal count in seven years.
The average deal size stood at USD 71 million—the lowest in the same period—reflecting increased participation across a wider range of investors and ticket sizes rather than reduced appetite.
Equity Dominates Investment Structures
In FLUX FY26, equity continued to dominate deal structures, accounting for approximately 77% of total deal value, aligning with long-term trends.
This marks a strong reversal from FY25, when hybrid structures skewed the mix. Debt contributed the remaining 23%, with no hybrid deals recorded during the year.
Commercial Office Leads, Retail Sees Revival
Sector-wise, FLUX FY26 saw commercial office assets emerge as the top-performing segment, accounting for USD 1.6 billion across 14 deals. The average deal size increased significantly to around USD 116 million, compared to USD 80 million in FY25.
Strong office absorption, particularly driven by Global Capability Centres (GCCs), continued to boost investor confidence. Notably, domestic investors made significant inroads into this segment, which has traditionally been dominated by foreign capital.
Retail real estate also made a strong comeback in FLUX FY26, contributing 9% of total deal value after minimal activity in the previous two years.
A key highlight was Blackstone’s acquisition of Kolkata’s South City Mall for USD 377 million—the largest equity deal of the year—signaling renewed institutional interest in high-quality retail assets backed by India’s consumption growth.
Residential real estate recorded 26 institutional transactions in FLUX FY26, maintaining stability in deal volume and average deal size at approximately USD 25 million.
Continued support from the banking sector, reflected in strong credit growth, has provided developers with a cost-effective alternative to private equity funding. However, institutional investments remained steady, especially among established developers.
Industrial and logistics assets, which accounted for 47% of deal activity in FY25, moderated to 10% in FLUX FY26. Despite this, investor interest remains strong, driven by sustained demand from e-commerce and the transformation of warehouses into tech-enabled fulfilment hubs.
Domestic Capital Reaches Multi-Year Peak
A key highlight of FLUX FY26 is the surge in domestic capital participation. Domestic investments rose to USD 1.642 billion—the highest in at least seven years—while the share of foreign capital declined to 52%.
Aashiesh Agarwaal, SVP – Investment Advisory, ANAROCK Capital, stated, “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 FLUX 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.”
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Geographic Trends: NCR Leads in FLUX FY26
In FLUX FY26, NCR led city-level deal activity with a 23% share, followed by MMR at 17%, Bengaluru at 13%, and Chennai at 9%. Kolkata saw a notable jump to 9%, driven largely by the South City Mall transaction.
Meanwhile, the share of pan-India or multi-city deals declined sharply from 50% in FY25 to 18% in FLUX FY26, reflecting a more targeted, city-specific investment strategy among investors.
Platform Investments Expand Market Horizons
Platform investments remained a defining trend in FLUX FY26, with HDFC Capital participating in half of all such transactions. Key investments included Eldeco (USD 174 million), Hero Realty (USD 112 million), and Curated Living Solutions for rental housing (USD 109 million).
The year also witnessed the emergence of new investment platforms focused on rental housing and luxury second homes, indicating a strategic shift beyond traditional real estate segments.
