Institutional investment in India’s real estate sector rose sharply in the first three months of 2026, driven by a surge in domestic capital, according to a new report by Colliers.
The report found that total inflows reached $1.6bn (£1.3bn) between January and March, marking a 25% increase compared with the same period last year. Domestic investors accounted for the majority of this growth, contributing $1.2bn — a 57% rise year-on-year — and making up around three-quarters of total investments.
This represents a notable shift from previous years, when domestic participation typically ranged between 20% and 50%. In contrast, foreign investment declined by 23% annually to $0.4bn, reflecting a more cautious approach by global investors amid ongoing uncertainty in trade, commodity prices, and energy markets.
Office assets remained the most attractive segment, drawing $0.8bn, or half of total inflows. Investment in this category nearly doubled compared with the same quarter in 2025, with domestic investors contributing more than 90% of the total.
Regionally, Delhi NCR and Bengaluru together accounted for 46% of overall investment activity. Delhi NCR led with $0.4bn, followed by Bengaluru with $0.3bn, largely driven by major office transactions in operational assets.
The residential sector attracted $0.3bn, recording modest annual growth of 7%, while hospitality, retail, and alternative assets together contributed over one-fifth of total inflows. Foreign investors accounted for around 70% of investments in these segments.
Despite a decline compared with the previous quarter, overall investment levels remained significantly higher than historical averages.
Badal Yagnik said the sector continues to show resilience, supported by strong domestic demand, adding that India’s long-term growth prospects remain positive despite global headwinds.
