The real estate sector in India attracted institutional investments worth $1.6 billion in the first quarter of 2026, marking a 25% increase compared to the previous year. Domestic capital played a significant role in driving this growth, with Indian investors contributing $1.2 billion, representing a 57% surge year-on-year. This shift indicates a departure from the traditional domestic investment levels observed in the past few years.
Foreign investments in the sector declined by 23% to $0.4 billion during the same period, as global investors exercised caution due to uncertainties in trade, crude, and commodity markets. Office assets emerged as the most favored investment category, drawing $0.8 billion, which was double the amount seen in Q1 2025.
The report highlighted that over 90% of office-segment investments were propelled by domestic investors, whose contributions increased more than threefold annually. Geographically, Delhi NCR and Bengaluru jointly captured 46% of the total investments, with Delhi-NCR leading at $0.4 billion, followed by Bengaluru at $0.3 billion, driven by substantial office transactions.
Multi-city investments constituted nearly one-third of the quarterly inflows, amounting to close to $0.5 billion. The residential segment also saw growth, attracting $0.3 billion, a 7% increase from the previous year, and comprising one-fifth of the total quarterly investments. Additionally, hospitality, alternatives, and retail segments collectively accounted for over 20% of the total inflows, with foreign capital contributing 70% to investments in these sectors.
Despite a slight decrease from Q4 2025, the overall inflows in Q1 2026 were 64% higher than the average first-quarter volumes since 2020. Colliers India’s CEO and Managing Director, Badal Yagnik, emphasized the resilience of institutional investments in India’s real estate market, driven by robust domestic demand across various asset classes. Yagnik also noted that while global investors may remain cautious in the short term, India’s favorable demographics and consumption-driven economy position it strongly in the wider Asia-Pacific region.
