India’s real estate sector has recorded its strongest first-quarter institutional investment inflows since 2022, signalling continued investor confidence despite global economic uncertainty.
According to a report by Vestian, total investments reached $1.4bn between January and March 2026. While this marked a 62% decline compared with the previous quarter—when activity was unusually high—it represented a 74% increase from the same period last year.
The data suggests that investor sentiment towards Indian real estate remains resilient, even as geopolitical tensions and macroeconomic pressures weigh on global markets.
Commercial real estate emerged as the dominant segment during the quarter, accounting for 80% of total investment activity, up sharply from 38% a year earlier. The surge was largely driven by strong demand from global capability centres (GCCs), which continue to expand their presence in India.
In value terms, commercial assets attracted more than $1.1bn in investments, reflecting a 266% year-on-year increase. However, on a quarterly basis, this segment also saw a 51% decline, mirroring the broader moderation following the previous quarter’s peak.
In contrast, residential real estate experienced a significant slowdown. Investments in the segment fell to $0.2bn, down 53% from the previous quarter and 59% compared with a year earlier.
A notable shift was also observed in the source of capital. Domestic investors accounted for a substantially larger share of total inflows, rising to 72% in Q1 2026 from 22% in the preceding quarter. This indicates a growing reliance on local capital as foreign participation moderates.
Shrinivas Rao, chief executive of Vestian, said the sector continues to demonstrate resilience, with domestic investment helping sustain momentum. He added that demand from GCCs is reinforcing India’s position as a long-term destination for real estate investment.
