Record Real Estate Inflows: Key Insights for Homebuyers

India’s real estate sector has witnessed a record capital inflow of $30.7 billion between 2024 and the first quarter of 2026, marking an 88% increase from the $16.3 billion recorded in the previous two-year period, according to a report by CBRE Group.

The report highlights that acquisitions of land, development sites, and built-up office assets accounted for more than three-fourths of the total inflows during this period. Institutional investors, who contributed nearly 30% of overall investments, have more than doubled their capital deployment compared to 2022-2023, driven by office, retail, and logistics assets.

Industry experts attribute the sharp rise in investments to growing confidence in India’s property market, which could translate into more residential developments, improved infrastructure, and a wider array of housing options for buyers across both metro and Tier-II cities.

Parvinder Singh, CEO of Trident Realty, noted that India’s real estate sector is moving into a more balanced and sustainable growth phase. This is supported by infrastructure upgrades, stronger investor confidence, and evolving buyer expectations. Singh emphasized that Tier-II cities are attracting attention as urban development and connectivity improve, creating fresh opportunities for residential projects.

Buyers today are prioritizing connectivity, convenience, open spaces, and holistic living experiences while choosing homes. Anil Godara, Founder and Managing Director of J Estates, observed that housing demand across major Indian cities has remained steady in recent years, driven by rising income levels and growing investor confidence. According to the CBRE report, annual housing sales have consistently exceeded 400 million square feet since 2023. Godara highlighted that buyers are looking for spacious homes, better amenities, and improved connectivity, with a growing interest in senior citizen housing projects due to changing lifestyles and family structures.

Aman Sharma, Managing Director and Founder of Aarize Group, noted that the report reflects a structural shift in India’s real estate market, driven by stronger infrastructure, improved connectivity, stable occupier demand, and a more mature investment environment. Tier-II cities are gradually becoming important markets for organized residential and mixed-use developments, helping broaden growth beyond major metropolitan centers. Sharma added that buyers are becoming more selective and value-conscious, preferring better-planned communities, open spaces, and improved quality of living.

Pratik Tibrewala, Head of Corporate Finance at M3M India, pointed out that the scale of capital inflows highlighted in the report underscores the sector’s structural transformation and strengthening confidence among investors and end users. A significant share of land acquisition capital is being directed toward residential and mixed-use developments, which could create wider opportunities for homebuyers in the coming years.

Santosh Agarwal, Executive Director and CFO of Alpha Corp Development, emphasized that reforms such as the Real Estate Regulatory Authority have improved transparency and strengthened confidence among both buyers and investors. Continued capital inflows are enabling developers to build with greater confidence while opening new avenues for residential projects across cities.

Ashish Sharma, AVP Operations at Brahma Group, noted that the growing share of investments flowing into residential and mixed-use developments reflects continued confidence in end-user demand. Institutional interest across office, retail, and residential assets indicates broad-based and long-term confidence in India’s real estate market.

Overall, the record capital inflows into India’s real estate sector signal a positive outlook for the industry. Buyers should consider factors such as connectivity, amenities, and quality of life when making their purchasing decisions, as the market continues to evolve and expand.