In the second quarter of 2026, institutional investments in India’s real estate sector surged to $1.9 billion, marking a 16% increase from the previous quarter. Despite a 7% year-on-year moderation in investment activity, the market saw consistent deployment, driven by strong participation from domestic investors and a preference for income-generating assets.
The report by Cushman & Wakefield highlighted that in the first half of 2026, institutional investments totaled $3.5 billion, showing a 6% rise from the same period in 2025. This growth reflects sustained confidence in India’s real estate fundamentals amid global economic uncertainties.
Looking forward to the second half of 2026, the report forecasts stable institutional investment activity in India, supported by robust macroeconomic fundamentals and ongoing infrastructure-led growth. Office assets were the primary focus in Q2, attracting nearly $1 billion and constituting 51% of total investments, maintaining their lead in the market for the fourth consecutive quarter.
Investor interest in office real estate remains strong due to high occupier demand, especially from Global Capability Centres (GCCs), decreasing vacancy rates in major office markets, and continuous rental growth in prime micro-markets. Data centers emerged as the second-largest recipient of capital in Q2, accounting for 40% of investments, reflecting rising investor interest in digital infrastructure assets driven by AI adoption, cloud expansion, and data localization requirements.
During H1, domestic institutions led investments with $2.2 billion, representing 64% of total investment activity, a significant increase from the previous year’s 43% share. Foreign investments totaled $1.3 billion, comprising the remaining 36%, down from 57% in the same period last year.
Private equity investors were the main source of institutional capital in Q2 2026, contributing 85% of total investment volumes, while REIT-led investments made up the remaining 15%.
