India's Real Estate Market Poised for Strong Growth in 2026

India is set to remain a key destination for institutional real estate capital in the Asia Pacific region as investment activity is expected to gain momentum in 2026, supported by stabilizing interest rates and improving financing conditions. The country recorded one of the fastest growth rates in the region, with institutional inflows touching a record $8.5 billion in 2025, driven largely by strong demand for office assets, according to Colliers’ Asia Pacific Investment Insights March 2026 report.

Across the region, real estate investments in nine Asia Pacific markets rose 8% year-on-year to $162 billion in 2025, with activity picking up in the second half of the year as buyers and sellers moved closer on pricing and investor confidence gradually improved.

Outlook for 2026: Real estate investment activity across the Asia Pacific region is expected to strengthen in 2026 as stabilizing interest rates, easing inflation, and improving financing visibility encourage investors to deploy capital. Domestic investors are likely to remain the primary drivers of transactions, while cross-border participation is expected to gradually recover as pricing certainty improves. Core sectors such as office are expected to retain scale and liquidity, while alternative assets and select retail segments could attract incremental capital as investors diversify portfolios.

India is expected to remain one of the key beneficiaries of this recovery cycle, after emerging as one of the fastest-growing real estate investment markets in Asia Pacific in 2025. Institutional inflows into Indian real estate touched a record $8.5 billion in 2025, with office assets accounting for more than half of the investments, according to Colliers’ Asia Pacific Investment Insights March 2026 report.

Across the region, real estate investments in nine key Asia Pacific markets reached $162 billion in 2025, marking an 8% year-on-year increase. Momentum picked up in the second half of the year as buyers and sellers moved closer on pricing expectations.

Investment activity strengthened notably in H2 2025, which recorded $87.3 billion in inflows, up 11% year-on-year and 17% higher than H1 2025, reflecting improving investor confidence and stronger deal activity across markets including Australia, Hong Kong, India, Japan, mainland China, New Zealand, Singapore, South Korea, and Taiwan.

Among these markets, South Korea, Japan, and Singapore led overall investment volumes, highlighting the depth and maturity of these capital markets. However, Singapore and India recorded the strongest year-on-year growth, with investment volumes rising 35% and 29%, respectively.

India continues to strengthen its position as a key investment destination within the APAC region, recording one of the strongest growths in real estate investments among the nine major APAC markets in 2025. While domestic capital continues to drive investment activity across most APAC markets, India has seen relatively stronger cross-border capital movement, with foreign investors accounting for 43% of the USD 8.5 billion inflows during the year. Looking ahead, institutional investments in Indian real estate are expected to remain robust through 2026, supported by the strong economic growth prospects and sustained demand for high-quality assets. At the same time, the impact of global headwinds and ongoing trade negotiations will remain a key monitorable, said Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India.

By asset class, office assets remained the dominant investment segment across Asia Pacific, attracting $58.5 billion in 2025, up 21% year-on-year, and accounting for 36% of total investment volumes. The segment continues to benefit from steady occupier demand for high-quality assets in prime business districts.

The industrial and logistics sector recorded $30.1 billion in investments, ranking second overall despite moderating from the strong activity seen in 2024.

Retail investments rose 15% year-on-year to $29.7 billion, supported by improving asset performance and stronger consumer sentiment. Meanwhile, alternative asset classes recorded the fastest growth, surging 191%, driven by rising institutional appetite for diversification into emerging sectors.

Office assets continue to remain the top preference for institutional investors across most APAC markets, including India. The sector dominated real estate investments in five of the nine major APAC markets in 2025, reflecting sustained occupier demand in institutional-grade assets. In India alone, office investments reached about USD 4.5 billion during the year, accounting for over half of the total institutional inflows. Looking ahead, platform deals and partnerships between global investors & domestic developers will continue to gain traction, enabling large-scale capital deployment and reinforce India’s position as a key market for office investments in the APAC region, said Vimal Nadar, National Director, Research, Colliers India.

Domestic capital flows continued to anchor investment activity across most Asia Pacific markets, while cross-border investors remained active in gateway markets such as Hong Kong, Singapore, and India.

We are seeing a shift from caution to conviction. Investors are prioritizing clarity, quality, and markets with depth of capital. With domestic capital providing a stable foundation and cross-border interest beginning to re-engage, the region is entering a more measured, disciplined, and increasingly broad-based recovery phase. Office assets continue to provide scale, transparency, and income stability, but we are also seeing a clear acceleration into alternatives and selective retail as investors rebalance portfolios and pursue diversification, said Theo Novak, Managing Director, Capital Markets & Investment Services, Asia Pacific at Colliers.

With macroeconomic conditions stabilizing and capital gradually returning to property markets, India is likely to remain a key destination for global real estate investors in the region, supported by strong economic growth, expanding occupier demand, and increasing partnerships between global investors and domestic developers.