India's Real Estate Sector Attracts $1.6 Billion in Q1 2026: Colliers
Gurugram: India’s real estate sector continued to attract strong institutional interest in Q1 2026, with investments rising 25 per cent year-on-year to $1.6 billion. This growth was primarily driven by robust domestic participation, despite global uncertainties.
Domestic inflows surged 57 per cent annually to $1.2 billion, accounting for nearly three-fourths of total investments. This is well above the 20–50 per cent share seen over the past few years. Despite a quarter-on-quarter (Q-o-Q) moderation, overall inflows remained 64 per cent higher than the average first-quarter levels since 2020, highlighting sustained optimism across asset classes.
Foreign investments, however, declined 23 per cent YoY to $0.4 billion, reflecting caution amid volatility in global trade and commodity markets. Analysts expect overseas investors to adopt a wait-and-watch approach in the near term, though strong domestic demand is likely to cushion the impact. “Institutional investments remain resilient, supported by strong domestic demand. The current caution among global investors is likely to be temporary, given India’s favourable demographics and consumption-driven economy,” said Badal Yagnik.
At the city level, Delhi-NCR led with over $0.4 billion in inflows, followed by Bengaluru at $0.3 billion. Together, the two markets accounted for 46 per cent of total investments, driven largely by office transactions. Multi-city deals contributed nearly one-third of inflows, with hospitality and residential assets gaining traction across markets.
Office assets dominated with $0.8 billion, accounting for half of total investments and nearly doubling year-on-year. Domestic investors contributed over 90 per cent of these inflows, reflecting strong confidence in high-quality, income-generating office assets. Residential investments stood at $0.3 billion, up 7 per cent annually.
Meanwhile, hospitality, retail, and alternative segments together accounted for over 20 per cent of total inflows, with foreign capital contributing around 70 per cent, indicating diversification into emerging asset classes, said Vimal Nadar, National Director & Head of Research, Colliers India.
