India Real Estate Investments Rise 25% to $1.6 Billion in Q1 2026, Driven by Domestic Capital
Domestic Investors Take the Lead as Foreign Inflows Slow
New Delhi, April 2: Institutional investments in India’s real estate sector rose sharply in the January to March quarter of 2026, reaching $1.6 billion, marking a 25 per cent year-on-year increase, according to a report released on Thursday.The growth was largely fueled by a strong surge in domestic capital. As per Colliers, Indian investors contributed $1.2 billion during the quarter, registering a 57 per cent annual rise and accounting for nearly three-fourths of the total inflows. This represents a notable shift compared to the typical domestic share of 20 to 50 per cent observed over the past four to five years.
In contrast, foreign investments declined to $0.4 billion, down 23 per cent year-on-year, as global investors maintained a cautious approach amid uncertainties in trade, crude oil prices, and commodity markets.
Office Assets Dominate Investment Activity
Office assets emerged as the top-performing segment, attracting $0.8 billion, which accounted for half of the total investments during the quarter. This figure is nearly double the investment levels recorded in the same period last year.Domestic investors played a dominant role in this segment, contributing more than 90 per cent of office-related inflows. Their investments in office assets rose more than threefold compared to the previous year.
Delhi NCR and Bengaluru Lead Key Markets
From a geographic perspective, Delhi NCR and Bengaluru together accounted for 46 per cent of total investments. Delhi NCR led with inflows of $0.4 billion, followed by Bengaluru at $0.3 billion. Both cities witnessed strong activity driven primarily by large office transactions involving operational assets.Multi-city deals also contributed significantly, accounting for nearly one-third of total inflows at approximately $0.5 billion.
Residential and Other Segments Show Steady Growth
The residential segment attracted $0.3 billion in investments, reflecting a 7 per cent year-on-year increase and contributing around one-fifth of the total inflows.Meanwhile, hospitality, alternative assets, and retail segments collectively accounted for over 20 per cent of the total investments. Notably, foreign capital dominated these segments, contributing 70 per cent of the cumulative inflows.
Investment Trends Remain Strong Despite Sequential Dip
Although overall inflows declined compared to the previous quarter, Q1 2026 investments were still 64 per cent higher than the average first-quarter volumes recorded since 2020, indicating sustained momentum in the sector.According to Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India, institutional investments in the country’s real estate market remain resilient, supported by strong domestic demand across asset classes.
He added that while global investors may remain cautious in the near term, India’s favorable demographics and consumption-driven economy are expected to maintain its position within the broader Asia-Pacific real estate landscape.
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