Institutional Investments in Indian Real Estate Surge 25% to $1.6 Billion in Q1 2026
Institutional investments in Indian real estate have shown significant growth, rising 25% year-on-year to $1.6 billion in the January–March quarter of 2026, according to a recent report by Colliers India. This surge is largely attributed to a substantial increase in domestic capital, which surged 57% to $1.2 billion during the quarter, accounting for nearly 75% of total inflows. This is significantly higher than historical averages.
In contrast, foreign investments declined by 23% year-on-year to $0.4 billion, reflecting the impact of global uncertainties. The domestic investment boom has been a crucial factor in sustaining the real estate market's momentum despite volatility in international markets.
Delhi-NCR and Bengaluru emerged as the top investment destinations, together accounting for 46% of total inflows. Delhi-NCR attracted about $0.4 billion, while Bengaluru drew approximately $0.3 billion, driven primarily by transactions in office assets. Office real estate remained the preferred asset class, accounting for around 50% of total investments at $0.8 billion, nearly double the levels seen a year ago. Residential assets followed with a 20% share, attracting about $0.3 billion.
Badal Yagnik, CEO and managing director of Colliers India, highlighted that domestic capital continues to support investment activity despite the volatility in global markets. This trend underscores the resilience and growing confidence of domestic investors in the Indian real estate sector.
Other segments such as hospitality, retail, and alternative assets together accounted for over 20% of total inflows, with a significant share of investments coming from foreign investors. This diversification in investment across various asset classes indicates a broad-based recovery and growth in the real estate market.
The robust performance of the Indian real estate sector is attributed to several factors, including favorable government policies, improving economic conditions, and increased investor confidence. The government's focus on infrastructure development and urbanization has also played a crucial role in attracting both domestic and foreign investments.
Despite the challenges posed by global economic uncertainties, the Indian real estate market continues to show strong fundamentals and growth potential. The surge in institutional investments is expected to further drive the development of key sectors, contributing to the overall economic growth of the country.
