Global institutional investors are gearing up to invest $144 billion in commercial real estate by 2026, indicating a significant resurgence in investment activity. India is increasingly becoming an attractive destination for global capital due to its potential for scale, income visibility, and long-term growth, as per Knight Frank’s latest ‘Active Capital Survey.’ The report highlights that 87% of investors plan to boost direct commercial real estate investments in 2026, with 62% aiming to be net buyers, showcasing a robust acquisition appetite on a global scale.
The renewed interest from investors is primarily driven by a focus on Core and Core-plus strategies globally, with a substantial $37 billion earmarked for Core assets. According to Shishir Baijal, International Partners, Chairman, and Managing Director at Knight Frank India, global capital is making a comeback with a more disciplined approach. India is increasingly perceived as a defensive growth market, supported by strong occupier demand, improving asset quality, and long-term structural drivers.
The evolving commercial real estate market in India, especially in Grade A office assets across major cities like Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune, and Chennai, aligns well with this shift. Globally, offices have re-emerged as the most sought-after asset class, with 69% of investors planning to allocate funds in 2026. The focus is on well-located, ESG-compliant assets meeting modern workplace standards, while avoiding assets with potential long-term obsolescence.
Investor interest extends beyond offices to living sectors globally, with 65% of investors planning allocations, attracted by demographic trends and stable income characteristics. While institutional living segments like rental housing and student accommodation are still emerging in India, they present a significant medium- to long-term opportunity given the country’s rapid urbanization and youthful population profile, as highlighted in the report.
Retail is regaining investor attention worldwide, with 56% of investors planning allocations, reflecting stabilization and opportunities in dominant, experience-led shopping centers. Additionally, operational real estate sectors such as data centers, infrastructure, and healthcare are gaining momentum globally as investors seek exposure to long-term structural growth drivers. In India, the increasing digital adoption, expanding healthcare requirements, and ongoing public infrastructure investments are fueling growing interest in these segments.
