India Real Estate Investments Soar to Record $5.1 Billion in Q1 2026, Driven by REITs and Developers
Capital inflows into India’s real estate sector have surged 72% year-on-year to reach a record $5.1 billion in the January–March quarter of 2026, compared to $2.9 billion in the same period last year, according to CBRE South Asia’s latest India Market Monitor Q1 2026 – Investments report. This sharp rise highlights the growing strength of the Indian real estate market and increasing investor confidence.
The sector has recorded its highest-ever quarterly investment, with developers leading the inflows, followed closely by Real Estate Investment Trusts (REITs). Furthermore, investments increased 53% quarter-on-quarter from $3.3 billion in Q4 2025, thereby reinforcing sustained momentum and strong institutional participation in India’s property sector.
“India’s record investment inflows underscore the strong confidence of domestic investors and institutional players in the country’s real estate growth story,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE. Despite global macroeconomic challenges, India’s resilient economic framework continues to attract deep pools of capital. The sharp rise in REIT activity also reflects a maturing market increasingly focused on institutionalised, yield-generating assets, he added.
During the quarter, built-up office assets and land or development site acquisitions drove the majority of investments, together accounting for over 90% of total equity inflows. As a result, these segments emerged as key growth drivers within the real estate investment landscape.
Domestic investors, particularly developers, dominated the market and contributed 96% of the total inflows. Developers accounted for 42% of the investments, while REITs contributed nearly 40%, thereby showcasing strong domestic capital participation alongside institutional investment vehicles.
Notably, REIT investments crossed $2 billion during the quarter, marking a significant multi-fold increase compared to the previous quarter and forming a substantial portion of overall investments. At the same time, investors allocated a considerable share of capital toward land acquisitions. More than 73% of the funds directed toward site purchases flowed into mixed-use and residential developments, while the remaining investments supported office, warehousing, and hospitality projects.
Gaurav Kumar, Managing Director and Co-Head, Capital Markets, India, CBRE, said investors continue to prefer high-quality office assets, backed by strong domestic institutional participation and foreign capital, particularly through REITs. He said that rising site acquisitions for mixed-use and residential developments highlight a resilient market outlook. Going forward, investment activity is expected to balance income-generating assets with higher-growth opportunities.
Geographically, Bengaluru, Mumbai, and Delhi-NCR collectively accounted for nearly 65% of the total investment activity during the quarter, thereby emerging as key hubs for real estate growth and capital inflows.
Among international investors, Singapore contributed approximately 72% of overseas investments, while Canada accounted for around 27%, highlighting continued global interest in India’s real estate sector. Additionally, the residential segment maintained strong momentum, supported by the launch of new investment and development platforms worth approximately $234 million during the quarter, alongside the primary inflows of $5.1 billion.
