India's Real Estate Sector Sees Record Equity Inflows of $30.7 Billion (2024-2026 Q1)

Mumbai: India’s real estate sector attracted record equity inflows of $30.7 billion between 2024 and the first quarter of 2026, an 88% increase over the $16.3 billion witnessed in 2022-2023, according to a CBRE South Asia report.

Land and development sites, along with office assets, accounted for more than three-fourths of total inflows during the period, underscoring continued investor preference for core segments.

Institutional investors, contributing about 30% of overall investments, recorded more than a two-fold increase in capital deployment compared with 2022-2023, driven largely by built-up office, retail, and logistics assets, the report released at a CII conference indicated.

“We are witnessing the payoff of a decade of structural reforms,” said Anshuman Magazine, Chairman & CEO-India, South-East Asia, Middle East & Africa, CBRE. “From RERA and GST to the RBI’s Project Finance Directions in 2025, each intervention has made India’s real estate market more transparent, more resilient, and more institutionally credible. The documented debt inflows reflect a long-term conviction and remain well-informed and regulated. India’s BFSI sector has not just returned to real estate but has redefined its relationship with the sector.”

According to CBRE’s 2026 Asia Pacific Investor Intentions Survey, over 74% of investors indicated plans to increase allocations to Indian real estate in 2026, citing strong occupier demand, low debt costs, and growth in industrial and digital infrastructure.

“Against a backdrop of global geopolitical uncertainty and yield hardening, India’s real estate sector is increasingly regarded as a high-conviction, long-duration bet by both domestic and international institutional capital,” Magazine added.

The sector also saw the acquisition of around 6,025 acres of land for greenfield developments between 2024 and the first quarter of 2026, translating into capital deployment of about $13 billion. Over 80% of this capital was directed towards residential, mixed-use, and office projects, with the remainder flowing into warehousing, data centres, and retail.

Public equity markets have deepened their role in real estate financing. Real estate investment trusts (REITs) posted a nearly six-fold increase in market capitalisation to $1.7 trillion between April 2020 and December 2025.

“India’s real estate sector has evolved into a key avenue for institutional capital, driven by strong investor confidence, reforms, and the growing role of REITs. Sustained policy support, regulatory clarity, and closer alignment between industry and financial institutions will be critical to maintaining this momentum and expanding investment across segments and cities,” said Vir S Advani, Chairman, CII Western Region and CMD, Blue Star.

According to him, real estate and BFSI together form a powerful engine of India’s growth. With the sector contributing 7–8% to GDP and projected to reach 13% by 2030, stronger linkages between the two will unlock investment, support sustainable development, and help shape future-ready cities.

Listed REITs deployed a record $2 billion in Q1 2026 alone, about four times quarter-on-quarter and six times year-on-year, taking total deployment since 2024 to $3.8 billion, up 66% compared with 2022-2023.

On the debt side, bank credit to commercial real estate rose 16% year-on-year between March 2025 and February 2026, while non-banking financial company (NBFC) advances crossed the Rs 1 lakh crore mark in September 2025 for the first time in five years, reflecting improving institutional confidence.

Overall debt financing in the sector exceeded $146 billion cumulatively between 2024 and Q1 2026, with Mumbai, Delhi-NCR, and Bengaluru accounting for over 60% of flows.

Beyond core segments, alternative asset classes are gaining traction. Data centres remain a top investment theme, with additional commitments of $178 billion announced in Q1 2026. Hospitality attracted $0.46 billion in 2025, up 2.5 times year-on-year, while healthcare, pharmaceuticals, and biotechnology sectors drew over $8 billion in deals. Senior living is also evolving into institutionally managed platforms.