Domestic institutional investors have continued to dominate India’s real estate sector for a third consecutive quarter, as global uncertainties weigh on foreign inflows, according to a report by Cushman & Wakefield.
The firm’s Capital MarketBeat report for the first quarter of 2026 showed that domestic investors contributed 76% of total institutional investments, amounting to $1.2 billion. In contrast, foreign investors accounted for $0.4 billion, or 24% of the total. Overall institutional inflows stood at $1.6 billion, representing a 26% increase compared with the same period last year, though falling 52% from the previous quarter.
The report highlights a shift in investment patterns, with foreign capital remaining sensitive to global macroeconomic and geopolitical developments. Domestic investors, by contrast, have provided greater stability, leading to a rebalancing of capital flows in recent quarters.
Domestic participation has risen steadily, increasing from around 63% in the third quarter of 2025 to 81% in the fourth quarter, before easing slightly in early 2026. Despite this moderation, the latest figures point to sustained confidence among local investors in real estate as an asset class. The first quarter of 2026 also recorded the highest level of investment for that period since 2021.
Private equity remained the primary investment route, accounting for nearly three-quarters of total inflows, while real estate investment trusts contributed the remainder. Commercial office assets attracted the largest share of investments at 64%, followed by hospitality and residential segments.
Among cities, Delhi NCR led with 28% of total inflows, followed by Chennai and Bengaluru.
Analysts say the growing role of domestic capital reflects improving market fundamentals and a more structured approach to real estate investment, even as global economic conditions remain uncertain.
