DIIs Take the Lead in Indian Real Estate Investments, Outpacing FIIs Since 2014
For the first time since 2014, domestic institutional investors (DIIs) have taken the lead in India’s real estate investments, achieving a 52% market share. This shift marks a significant milestone, as data from JLL India reveals a robust growth trajectory despite global economic complexities.
Investments in the first quarter of 2026 surged by 37% year-on-year (Y-o-Y) to reach $1.7 billion, fully funded by DIIs. This growth underscores the resilience and fundamental strength of India’s real estate market, demonstrating that domestic capital remains the backbone of the sector.
“Domestic capital remains the backbone of our market, with real estate investment trusts (Reits) playing an instrumental role in deepening liquidity. Deal momentum remains strong as cross-border investors successfully close transactions. India's structural evolution positions us well to sustain this growth trajectory through 2026,” said Lata Pillai, Senior Managing Director & Head of Capital Markets at JLL India.
The extended decision-making timelines driven by global macroeconomic complexity have not deterred DIIs from making strategic investments. This resilience is a testament to the confidence domestic investors have in the Indian real estate market, which has shown consistent growth and promise.
Real estate investment trusts (Reits) have been instrumental in this growth, providing a platform for institutional investors to participate in the real estate sector. Reits have helped to deepen liquidity and attract a broader range of investors, contributing to the overall stability and development of the market.
Despite the challenges posed by global economic conditions, India's real estate market has demonstrated a strong ability to attract and retain investments. The sector's structural evolution, including regulatory reforms and improved transparency, has played a crucial role in this success.
As the market continues to evolve, the role of DIIs is expected to remain significant. Their continued investment and support will be crucial in maintaining the momentum and ensuring sustainable growth in the Indian real estate sector.
In conclusion, the surge in DII investments in the first quarter of 2026 is a positive indicator for the Indian real estate market. It reflects the confidence of domestic investors and the sector's ability to navigate global economic challenges. With the continued support of DIIs and the development of Reits, the Indian real estate market is well-positioned for sustained growth in the coming years.
