Global Investors to Deploy $144 Billion in 2026, with India Emerging as a Key Real Estate Market
Mumbai, Jan 28 (IANS) Global institutional investors are set to deploy $144 billion into commercial real estate in 2026, marking a significant rebound in investment activity. India is emerging as an increasingly relevant destination for global capital, driven by its scale, income visibility, and long-term growth potential, according to a report released on Wednesday.
Knight Frank’s latest ‘Active Capital Survey’ revealed that 87 per cent of investors (by AUM) intend to increase direct commercial real estate investment in 2026, while 62 per cent expect to be net buyers. This highlights a strong global acquisition appetite, particularly in Core and Core-plus strategies, with $37 billion of planned global investment targeting Core assets.
“Global capital is returning, but it is far more disciplined than in previous cycles,” said Shishir Baijal, International Partners, Chairman and Managing Director of Knight Frank India. “India is increasingly being viewed as a defensive growth market, supported by strong occupier demand, improving asset quality, and long-term structural drivers.”
This shift closely aligns with India’s evolving commercial real estate market, particularly in Grade A office assets across major cities such as Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune, and Chennai. Globally, offices have re-emerged as the most targeted asset class, with 69 per cent of investors planning allocations in 2026.
However, investors are highly selective, favouring well-located, ESG-compliant assets that meet modern workplace requirements, while avoiding assets facing long-term obsolescence. This trend mirrors India’s experience, where leasing momentum continues to be driven by Global Capability Centres (GCCs), technology firms, and domestic corporates, collectively accounting for approximately 75 per cent of the market, thereby reinforcing confidence in high-quality office stock.
Beyond offices, living sectors are the second most targeted globally, with 65 per cent of investors planning allocations. These sectors are attracted by demographic tailwinds and defensive income characteristics. While institutional living segments such as rental housing and student accommodation remain nascent in India, they represent a significant medium- to long-term opportunity given rapid urbanisation and a young population profile.
Retail has also returned to investor focus globally, with 56 per cent of investors planning allocations. This reflects stabilisation and opportunities in dominant, experience-led shopping centres. Operational real estate sectors, including data centres, infrastructure, and healthcare, are gaining traction globally as investors seek exposure to long-term structural tailwinds.
In India, rising digital adoption, expanding healthcare needs, and sustained public infrastructure investment are translating into growing interest across these segments. The combination of these factors positions India as a pivotal market for global real estate investors looking to balance growth and stability in their portfolios.
