Institutional investments in India’s real estate sector saw a significant 50% year-on-year increase to $4.5 billion in the first half of 2026, marking the strongest performance in six years. A report by real estate consultancy Colliers revealed that quarterly investments surged by 70% year-on-year to $2.9 billion in the April-June quarter.
Domestic investors took the lead in the market with $2.6 billion in investments, representing 57% of the total inflows, while foreign investments also rose by 24% year-on-year to $1.9 billion. Colliers India’s CEO and Managing Director, Badal Yagnik, noted that domestic investors have been consistently contributing up to 60% of institutional investments in recent quarters, with foreign investors showing increased selectivity and diversification beyond traditional real estate assets.
During the first half of 2026, office assets remained the primary investment choice, particularly operational office properties, attracting the majority of investments from domestic investors. Mixed-use and alternative assets each drew around $0.8 billion, contributing nearly one-fifth of total investments individually. The hospitality segment also experienced a significant increase in investments, reaching $0.3 billion, more than three times higher than the previous year.
In contrast, institutional investments in the residential segment witnessed a 43% year-on-year decline to $0.5 billion, as investors exercised caution due to escalating costs and a slowdown in housing sales. According to the report, Chennai and Bengaluru collectively attracted approximately $1.2 billion, making up about 27% of institutional investments during the first half of 2026. Multi-city transactions accounted for 46% of total investments, with Tier II and Tier III cities also seeing substantial capital deployment across hospitality, industrial, and residential projects.
