Winning Bizness Desk
In H1 2026, PE Investments in Real Estate Register 23 pc Slide
Private Equity (PE) investments in the country’s real estate segment declined 23 per cent on a Year-on-Year (YoY) basis to USD 1.13-billion in the first-half of this year (H1 2026)
This is against the USD 1.47-billion investment in H1 2025. Global investors are now engaging in more selective capital deployment due to elevated global interest rates, tighter financial conditions and heightened geo-political uncertainty.
Here, the point to note is that the office segment remains the preferred asset class for investment with a sizeable 89 per cent of private equity investments in the first-half of this year, while the residential sector received the remaining, stated Knight Frank’s Trends in Private Equity Investment in India: H1 2026 Report.
Private equity investments in the residential segment slid from USD 297-million in H1 2025 to USD 128-million in H1 2026, as investors shifted to a more cautious and selective approach towards development-led initiatives.
Importantly, the moderation comes despite healthy underlying housing market fundamentals. Residential real estate continues to benefit from increasing formalisation, stronger balance-sheets among leading developers and sustained end-user demand across crucial markets.
What is important to note here is that higher financing costs and stricter return expectations have led investors to focus on opportunities offering stronger risk-adjusted returns.
According to Mr Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, “The moderation in private equity investments during H1 2026 is largely a reflection of the evolving global capital environment rather than any deterioration in India’s real estate sector fundamentals.”
He added: “Looking ahead, India’s long-term growth story remains compelling but attracting larger pools of global capital will increasingly depend on creating a competitive investment framework that complements strong market fundamentals.”
India’s Industrial Output Grows 5 pc in May
Propelled by manufacturing, India’s industrial output moved northward to 5.1 per cent in May, rising from the 4.9 per cent of April. This northward movement was driven by stronger electricity generation and broad-based manufacturing growth.
This pick-up signals an improvement in factory activity, suggesting domestic demand remained resilient despite the prevailing global uncertainty.
Manufacturing, which carries the highest weight of 76 per cent in the Index of Industrial Production (IIP) basket expanded 5.5 per cent in May, slightly lower than the growth in April but indicating a steady momentum in industrial activity.
Electrical equipment registered the strongest expansion among major manufacturing segments, rising 20.8 per cent on a Year-on-Year (YoY) basis in May.
Fabricated metal products grew 15.5 per cent while motor vehicles expanded 14.5 per cent and other transport equipment rose 14.3 per cent. Computer and electronic products also clocked a robust growth of 11.4 per cent.
A point to highlight here is that capital-intensive sectors continued to outperform, reflecting sustained investment demand and infrastructure-led spending.
Electricity and gas supply emerged as the biggest driver of headline growth, rising 9.9 per cent in May. Electricity output alone increased 11.1 per cent likely reflecting higher summer power demand.
What needs to be noted here, however, is that mining and quarrying remained a drag on overall output—the sector contracted 1.6 per cent in May after shrinking 3.7 per cent in April. This segment was weighed down by weaker crude oil, gas and non-metallic mineral production.
Several consumer-facing sectors showed weakness. Wearing apparel output declined 8.8 per cent, printing slid 10.3 per cent and refined petroleum products contracted 4.7 per cent.
Chemicals also remained under pressure, declining 1.3 per cent.
Use-based data showed investment-linked production remained the strongest pillar of growth.
Capital goods output climbed northward 12.9 per cent in May, up from 12 per cent in April and a 9.5 per cent growth a year-ago, indicating continued strength in machinery and equipment demand.
The crucial infrastructure and construction goods segment grew 5.8 per cent while consumer durables rose 7.2 per cent, suggesting urban discretionary demand remained healthy.
Consumer non-durables, however, grew just 3.6 per cent, indicating demand for everyday consumption goods remained relatively subdued.
Suzlon Bags 400 MW Wind EPC Order from Tata Power Renewable
Suzlon Energy Limited has said that it has secured a 400 MW wind energy engineering, procurement and construction (EPC) contract from the blue-chip Tata group company, Tata Power Renewable Energy Limited (TPREL).
This takes the cumulative order-book between the two companies to more than 1 GW.
The company informed that the project would be executed in Andhra Pradesh’s Anantapur district and would involve installing 127 S144 wind turbine generators with a rated capacity of 3.15 MW each.
Suzlon will execute the project under an EPC model covering land acquisition, turbine supply, balance-of-plant works, pool sub-station, extra high-voltage transmission line, commissioning and operations and maintenance services.
According to Suzlon, while the new contract takes its order-book in Andhra Pradesh to nearly 1 GW, the order is also the fourth awarded by TPREL to the company and follows previous projects undertaken by the two companies in Maharashtra, Tamil Nadu and Karnataka.
Suzlon said that it currently has an installed wind energy base of 1.8 GW in the state, contributing to 28.44 per cent of Suzlon’s installed based in south India.
“Tata Power operates one of India’s largest renewable energy portfolios and we are proud to have surpassed 1 GW in cumulative orders with them across four states. Over the past two decades, our partnership has evolved from individual projects to advanced hybrid and round-the-clock renewable energy solutions that support India’s energy transition,” Mr Girish Tanti, Vice-Chairman, Suzon Group, said.
Adani Group to Invest Rs 20,000-cr in Phase 1 to Build Integrated Airport Cities
Leading conglomerate, the Adani Group, plans to invest in excess of Rs 20,000-crore in the first phase to create integrated airport cities featuring hospitality, retail, business, entertainment and convention infrastructure.
This will be a part of the integrated airport city development spanning more than 655-acres across five states in the country. It represents an investment in excess of Rs 20,000-crore in the first phase.
Around 22-million sq ft will be developed across the cities of Mumbai, Navi Mumbai, Ahmedabad, Lucknow, Jaipur and Guwahati.
This Adani Group initiative is inspired by airport districts in Singapore, Dubai, Amsterdam and Seoul and it aims to transform airports into economic eco-systems that drive tourism, investment, employment and urban growth.
Adani Airport Holdings Limited (AAHL)’s Director Mr Jeet Adani, said that “around the world, the most successful airport districts have become centres of commerce, tourism and urban growth. As India’s aviation market expands, airports have an opportunity to create urban destinations where airports become catalysts for investment, employment, better passenger experiences and the long-term growth of the cities they serve.”
An important point to note here is that this encompasses a land-bank of over 655-acres across six airports in five states, including nearly 440-acres in Mumbai and Navi Mumbai alone.
What requires highlighting here is that nearly 70 per cent of the planned investment would be concentrated in Mumbai and Navi Mumbai. This reflects the Mumbai Metropolitan Region (MMR)’s position as India’s leading commercial, financial and aviation gateway.
AAHL is a subsidiary of Adani Enterprises Limited and the country’s largest private airport operator and a leading integrated airport infrastructure platform.
Presently, AAHL manages eight airports, including Mumbai, Ahmedabad, Lucknow, Mangalore, Jaipur, Guwahati and Thiruvananthapuram besides Mumbai’s second airport—Navi Mumbai International Airport.
