Institutional real estate inflows in India touch $5.9 billion in Jan-Sep: Report

New Delhi: Institutional investment into Indian real estate reached $5.9 billion in the first three quarters of 2026 (January-September), up 39 per cent year‑on‑year and marked the strongest nine‑month total in recent years, a report said on Thursday.

The report from Colliers India said domestic investors drove the rally, contributing $3.5 billion and accounting for close to 60 per cent of the total investments during the period.

Indian real estate has largely remained resilient to external volatilities, despite bleak global economic outlook and caution towards capital allocation in markets around the world.

A strong 59 per cent YoY surge in domestic capital inflows highlighted the depth and maturity of core real estate asset classes in India, the report noted.

Foreign investments rose 17 per cent to about $2.4 billion, with much of overseas money targeting developmental assets, driven by investors’ ongoing pursuit of long-term value creation in alternative, hospitality and mixed-use projects.

The report added that Q3 inflows stood at $1.4 billion, up 12 per cent year‑on‑year but down 51 per cent sequentially.

“In Q3 2026, domestic investors drove about $0.9 billion inflows, accounting for nearly two-thirds of the total investments. Local investors continue to prefer core assets, with residential & office segments collectively accounting for 46 per cent of the domestic capital allocation during the quarter,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.

While residential investments were largely directed towards developmental projects, office investments were primarily focused on operational assets, Yagnik said.

The report forecasted that evolving preferences across the risk-return spectrum and growing depth in domestic capital is expected to drive real estate investments in India, along with an uptick in foreign investment volumes in upcoming quarters.

Sustained leasing momentum across high-quality Grade A office assets and long-term demand prospects continue to reinforce the segment’s attractiveness amongst investors.

Office assets remained the major driver of real estate investments, accounting for 37 per cent share during the nine-month period. Mixed-use & alternative assets followed, with each of them contributing 16-17 per cent share.

Bengaluru, Chennai & Delhi NCR collectively account for nearly one-third of the inflows, while multi-city deals saw more than 2-fold rise on an annual basis, the report noted.

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