NCR Leads PE Investment Surge in Indian Real Estate H1 2026

Private equity investment in India's real estate sector saw a 23% year-on-year decrease, reaching $1.13 billion in the first half of 2026. This decline is attributed to global factors such as higher interest rates and geopolitical uncertainty, prompting investors to be more selective. Despite this overall trend, the office sector demonstrated resilience, attracting 89% of all investment. Office investment surged by 33% to $998 million, driven by demand from Global Capability Centres (GCCs) and a preference for steady income assets.

The National Capital Region (NCR) was the primary recipient of private equity funds, with an inflow of $411 million in H1 2026, marking a substantial 522% increase from the previous year. This performance was bolstered by a mix of office and residential deals, infrastructure development, and a growing corporate presence. Other cities like Pune, Chennai, and Bengaluru also saw significant investment, with Bengaluru's inflow fueled by GCC demand.

Investors showed a clear preference for ready-to-occupy office assets, which constituted 75% of office investments in H1 2026, a notable increase from 53% in H1 2025. This shift reflects a global trend of prioritizing assets with immediate cash flow potential amidst rising global borrowing costs. Conversely, private equity investment in residential real estate fell sharply to $128 million, down from $297 million in H1 2025, due to higher borrowing costs and stricter return expectations.