India's Real Estate Sector Witnesses 88% Growth in Equity Inflows to $30.7 Billion in Q1 2026
India's real estate sector has witnessed a remarkable surge in equity inflows, reaching $30.7 billion between 2024 and the first quarter of 2026. This represents an 88% increase compared to the $16.3 billion recorded during 2022–2023, according to a report by CBRE South Asia.
Land and development sites, along with built-up office assets, accounted for more than three-fourths of the total capital inflows during the period. Institutional investors contributed about 30% of the investments, more than doubling their capital deployment compared to the previous two-year period, with a focus on office, retail, and logistics assets.
The report noted that around 6,025 acres of land were acquired for greenfield developments between 2024 and Q1 2026, translating into an estimated capital deployment of about $13 billion. Over 80% of this investment was directed towards residential, mixed-use, and office projects, while the remainder went into warehousing, data centers, and retail developments.
Public markets also saw increased activity. Real estate investment trusts (REITs) deployed $2 billion in Q1 2026 alone, marking a sharp rise both sequentially and annually. Total REIT investments stood at $3.8 billion between 2024 and Q1 2026, up 66% compared to 2022–2023.
In the debt segment, bank credit to commercial real estate grew 16% year-on-year between March 2025 and February 2026. Non-banking financial companies’ advances to the sector crossed ₹1 lakh crore in September 2025, a five-year high, according to RBI data.
Overall, debt financing in the real estate sector exceeded $146 billion during 2024–Q1 2026, with Mumbai, Delhi-NCR, and Bengaluru together accounting for over 60% of the total flows. Non-tier I cities contributed about 8% of the activity.
The report also highlighted growing investor interest in alternative real estate segments. Data centers continued to attract significant commitments, while hospitality saw investments of about $0.46 billion in 2025, registering a sharp year-on-year increase. Healthcare, pharmaceuticals, and biotechnology segments together recorded over $8 billion in mergers, acquisitions, and private equity inflows during the year.
Other segments such as flexible workspaces and senior living are also witnessing increased institutional participation, indicating a broadening of real estate investment beyond traditional asset classes.
