New Delhi, April 1 – The Indian real estate sector recorded the highest first-quarter inflow of institutional investments since 2022, amounting to $1.4 billion in January-March 2026, according to a report released on Wednesday.
Despite registering a 62 per cent quarterly decline due to an exceptionally high base in the previous quarter, investments surged by 74 per cent over the same period a year earlier, according to a Vestian report.
This highlights strong investor confidence in India's real estate sector, even as global headwinds continue to intensify.
Driven by strong demand from GCCs, commercial assets dominated investment activity in Q1 2026, accounting for 80 per cent of the market share, up from 38 per cent a year earlier.
"With a sharp increase in domestic investments, the Indian real estate sector continues to demonstrate resilience in the face of rising geopolitical tensions and macroeconomic headwinds," said Shrinivas Rao, FRICS, CEO of Vestian.
"As foreign participation moderates, domestic capital is sustaining market momentum, while demand driven by GCCs continues to bolster confidence in commercial assets, further reinforcing India's appeal as a long-term investment destination," he added.
In terms of value, the segment attracted over $1.1 billion in investments, registering a significant 266 per cent year-on-year increase, despite a 51 per cent decline on a quarterly basis, according to the report.
On the other hand, investments in residential assets declined by 53 per cent quarter-on-quarter and 59 per cent year-on-year to $0.2 billion in Q1 2026.
Despite the decline in absolute terms, the share of investments in residential assets rose marginally to 15 per cent in Q1 2026 from 12 per cent in the previous quarter.
As domestic investors emerge as the primary drivers of growth in an increasingly volatile global landscape, the share of domestic investments rose significantly from 22 per cent in the previous quarter to 72 per cent in Q1 2026.
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