Commercial and Warehousing to Drive $14 Billion Real Estate Investments in 2026
Commercial real estate, warehousing, and residential segments will drive an estimated $14 billion in investments in 2026, with a gradual shift towards equity-led deals and stronger REIT participation, says Equirus’ Vijay Agrawal.
In an interview with ETRealty, Agrawal highlighted that commercial and warehousing investments will primarily be equity-led, with funds preferring ownership of assets. Residential investments, on the other hand, will continue to see a mix of structured financing and shorter-term entry-exit strategies.
He noted that there is a significant shift in residential real estate, with large institutional investors increasingly adopting equity partnership models with developers. This includes land acquisition and development collaborations, moving away from traditional structured debt deals.
Agrawal also mentioned that the Reserve Bank of India’s move to allow bank lending to Real Estate Investment Trusts (REITs) is likely to significantly improve the sector’s dynamics. This move could lower borrowing costs and extend loan tenures, enhancing net distributable cash flows and improving investor returns, making REITs more attractive.
On asset classes, Agrawal highlighted retail real estate as a strong performer compared to traditional office assets. He cited higher returns and growing consumer demand for experiential spaces as key factors. Despite the growth of e-commerce, physical retail, particularly malls, continues to see strong traction driven by rising incomes and changing consumption patterns.
Agrawal also pointed out that identifying mid-market companies with strong governance, entrepreneurial capability, and discipline remains central to Equirus’ investment approach. The focus is on long-term value creation through strategic partnerships.
Equirus Capital, a leading investment bank in India, specializes in providing a wide range of financial services including mergers and acquisitions, private equity, and debt advisory. The company's expertise in the real estate sector has made it a trusted advisor for many of India's leading developers and investors.
