- Institutional investments in Q2 2026 touch USD 2.9 billion, up 70% YoY driven by strong domestic & foreign investor participation
- At USD 1.3 billion, domestic investments more than doubled annually, accounting for a 46% share in Q2 2026
- Investment inflows in office assets surge ~4X times YoY to USD 1.1 billion in Q2 2026
- Mixed-use & alternative segments together drive nearly half of the quarterly inflows
- Multi-city deals dominate overall quarterly inflows; Chennai & Bengaluru together drive USD 0.9 billion inflows in Q2 2026
Gurgaon, 3rd July 2026: Indian real estate continued to witness strong participation from domestic and foreign investors alike in Q2 2026, with quarterly investments rising 70% Year-on-Year (YoY) to USD 2.9 billion. Even amidst global trade & capital deployment uncertainties stemming from the West Asia crisis, India’s real estate sector has demonstrated resilience and sustained growth momentum. In fact, institutional investments in the sector touched USD 4.5 billion during H1 2026, marking a 50% rise compared to the corresponding period of 2025. Interestingly, in 2026, capital inflows hit a six-year peak for the first half. This strong performance was underpinned by growing confidence of domestic investors, opportunistic deployment of foreign capital and surge in investments within alternative & mixed-use assets. Moreover, institutional investors continue to be invested in India for the long-term, with the IMF recently raising its GDP forecast for Fiscal Year (FY) 2027 by 10 bps to 6.5%.
Domestic investors drove real estate investments in India during H1 2026, with capital deployment rising 80% YoY to USD 2.6 billion and accounting for about 57% of the total inflows in the first half of the year. Strong conviction in the long-term prospects of Indian real estate continued to drive domestic investor interest. Meanwhile, foreign investments saw a resurgence, especially in the second quarter, driven by select large deals, taking up foreign capital inflows to USD 1.9 billion during H1 2026. This 24% YoY growth was largely supported by strategic equity level investments, stake acquisitions and capital allocation across mixed-use and alternative assets.
“Institutional investments in India’s real estate sector stood at USD 2.9 billion in Q2 2026, witnessing a 70% YoY rise. This growth was led by equally strong participation from domestic as well as foreign investors. Over the past few quarters, domestic investors have expanded their portfolios across asset classes, driving 40-60% of the real estate investments on a consistent basis. Foreign investors, meanwhile, although increasingly selective are likely to further tap into alternative and mixed-used segments. This balanced interplay of foreign and domestic investors will be crucial in charting the next growth phase of Indian real estate, especially during the times of uncertainty in capital deployment” said Badal Yagnik, CEO & Managing Director, Colliers India.
Trends in institutional investment inflows (USD million) –
| Asset Class | Q2 2025 | Q1 2026 | Q2 2026 | Q2 2026 vs Q2 2025(% YoY Change) | Q2 2026 vs Q1 2026(% QoQ change) | H1 2025 | H1 2026 | H1 2026 vs H1 2025 (%YoY change) |
| Office | 268.6 | 821.1 | 1,056.9 | 293% | 29% | 702.8 | 1,878.0 | 167% |
| Residential | 517.0 | 324.3 | 146.1 | -72% | -55% | 819.9 | 470.4 | -43% |
| Alternate assets1 | – | 133.0 | 635.0 | *NA | 377% | 71.0 | 768.0 | 982% |
| Industrial & Warehousing | – | 106.9 | 84.5 | *NA | -21% | 307.7 | 191.4 | -38% |
| Mixed use2 | 437.4 | 32.7 | 806.7 | 84% | 2367% | 628.5 | 839.4 | 34% |
| Retail | 380.0 | 47.7 | 37.5 | -90% | -21% | 380.0 | 85.2 | -78% |
| Hospitality | 88.2 | 170.8 | 108.8 | 23% | -36% | 88.2 | 279.6 | 217% |
| Total | 1,691.2 | 1,636.5 | 2,875.5 | 70% | 76% | 2,998.1 | 4,512.0 | 50% |
Note: 1-Alternative assets include data centers, life sciences, senior housing, holiday homes, student housing, schools, real estate services etc.
*NA-Not applicable: Investment inflows were limited for alternate assets and industrial & warehousing assets in Q2 2025; 2-Includes investments in mixed-use projects as well as deals involving investments across multiple assets in various locations
The institutional flow of funds include investments by Alternative Investment Funds (AIFs), family offices, foreign corporate groups, foreign banks, pension funds, private equity, real estate funds & platforms, foreign-funded NBFCs, listed REITs and sovereign wealth funds. The data has been compiled as per available information in the public domain.
Office assets drive over 40% of investments in H1 2026 followed by mixed-use & alternative segments
During H1 2026, office segment continued to dominate capital deployment, attracting around USD 1.9 billion of investments and accounting for over 40% of the total capital inflows. Domestic investors drove inflows in the office segment, majority of which were in standing assets. In case of the residential segment, investments in H1 2026 dropped by 43% annually to USD 0.5 billion. Overall, residential investors treaded cautiously as cost pressures and moderation in housing sales are beginning to impact project viability, investment decisions and timelines.
Interestingly, inflows in mixed-use assets and alternatives surged significantly, especially in the second quarter of the year. At around USD 0.8 billion worth of investments each, these segments individually contributed close to one-fifth of the total inflows during H1 2026. Foreign investors drove majority of the activity in these segments largely through equity stake purchases, signalling their long-term intent in portfolio diversification beyond the core real estate segments. Additionally, the hospitality segment also witnessed strong momentum, attracting USD 0.3 billion inflows during H1 2026. Although, this was on a comparatively lower base, the segment witnessed over three-fold rise annually, largely led by foreign investors.
“During the second quarter, office assets drove about 37% of the overall capital inflows at USD 1.1 billion followed by mixed-use and alternative segments. Notably, quarterly inflows across all the three segments saw close to or over 4X rise annually. Within the office segment, investors largely preferred operational assets. The recent listing of another office REIT further reinforces the growth momentum in India’s office market, with leading developers actively monetizing operational assets within their portfolios. Moreover, with office leasing anticipated to grow further in the second half of the year, institutional investors are likely to remain upbeat about the segment throughout 2026” said Vimal Nadar, National Director & Head of Research, Colliers India.
Chennai & Bengaluru together drive around 27% of the inflows in H1 2026
Amongst the Tier I cities, Chennai & Bengaluru together saw USD 1.2 billion of real estate investments, cumulatively driving about 27% of the inflows during H1 2026. Out of the approximately USD 0.6 billion inflows in each of the two cities, office segment accounted for a dominant 85–95% share during H1 2026.
Notably, multi-city deals had a 46% share in overall investments inflows during H1 2026. In fact, Tier II/III cities such as Coorg, Hosur, Coimbatore, Kochi, Ujjain etc. witnessed significant capital deployment particularly in hospitality, industrial & warehousing & residential segments during H1 2026.