India's real estate capital markets experienced a significant recovery in FY26, with 60 private equity deals valued at $4.3 billion, returning to levels last seen in FY22. This represents a 13% increase from $3.8 billion in FY24 and a 16% rise from $3.7 billion in FY25. The total number of transactions is the highest in seven years, reflecting a shift from a cautious investment environment to one characterized by broader market engagement. Notably, the largest deal in FY26 accounted for only 9% of total deal value, contrasting sharply with previous years where single large transactions dominated. Equity investments comprised 77% of the total deal value, while debt made up the remaining 23%. The office segment was particularly active, with 14 deals totaling $1.6 billion, driven by strong leasing demand from Global Capability Centres (GCCs). Domestic investors have also increased their participation, capturing 38% of total investments, while foreign investors' share decreased from 82% in FY22 to 52% in FY26. The residential segment recorded 26 institutional transactions, maintaining average deal sizes of $25 million, supported by robust bank lending. Overall, the investment landscape is evolving, with new platforms emerging in rental housing and luxury second homes.