Delhi-NCR, Bengaluru lead as real estate inflows rise 25% to $1.6 Bn

Indian real estate saw a strong inflow of institutional investment, particularly from global investors and domestic institutions. Overall, investment inflows into Indian real estate increased by 25% YoY to USD 1.6 billion in Q1 2026. Domestic investors poured in USD 1.2 billion into real estate during the quarter, recording a healthy increase of 57% YoY. Domestic capital accounted for 75% of total capital invested in Indian real estate in Q1 2026. On a QoQ basis, investments from domestic investors fell but were nevertheless 64% higher than the average first quarter investment volumes over the past 6 years (2020 to 2026). Indian investors across asset classes continue to remain bullish about Indian real estate despite growing global headwinds. 

Foreign investors pulled back on their investment activities and committed USD 0.4 billion into Indian real estate during the quarter, recording a decline of 23% YoY. The ability of global capital to deploy at the desired pace and size in India could remain uncertain for some time. While global investors may remain in wait-and-watch mode for a few quarters, impacting capital inflows to some extent, Indian investors are expected to hold steady.

“Institutional investments in India’s real estate market continue to remain resillient, supported by strong domestic demand across asset classes. In fact, domestic real estate investments witnessed a strong surge and accounted for three-fourths of the USD 1.6 billion inflows in Q1 2026, notably higher than the typical 20-50% share in the last 4-5 years. While global investors are likely to remain cautious in the near-term on account of volatilities in trade, crude and commodities market, this phase is expected to be transient in nature. India’s favourable demographics, consumption-driven economy and investor appetite to expand into both core and alternative assets are likely to keep its unique positioning in the wider APAC region intact,” said Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India.

Delhi NCR & Bengaluru cumulatively drive 46% of the inflows

At the city level, Delhi NCR drove over one-fourth of the total quarterly investments, attracting USD 0.4 billion, followed by Bengaluru with inflows of USD 0.3 billion. Together, these two markets contributed 46% of real estate investments in Q1 2026, primarily led by large office transactions in operational assets across both cities. Meanwhile, multi-city investments with close to USD 0.5 billion inflows accounted for almost one-third of the quarterly capital inflows. Hospitality and residential assets collectively accounted for nearly two-thirds of these multi-city investments, reflecting increasing investor appetite for opportunities beyond Tier I cities – spanning multiple markets and across wider range of asset classes.

Office assets drive half of the quarterly inflows followed by residential assets with 20% share

Office assets continued to see robust inflows from institutions at USD 0.8 billion during Q1 2026, contributing to half of the quarter’s flows and almost doubling when compared to the same period last year. Domestic investors drove more than 90% of the inflows into the office segment, witnessing investments more than tripling when compared to Q1 2025. This underscores growing confidence among Indian investors towards quality ready-to-move-in office assets with diversified tenant mixes, stable cash flows and better visibility of long-term returns in the country. 

The residential segment recorded the second-highest inflows at USD 0.3 billion during the quarter, witnessing a 7% YoY growth and comprising one-fifth of all quarterly investments. Investments into the hospitality, alternatives and retail segments also saw significant year-on-year growth, primarily from international investors.

“While office & residential segments continue to remain the front runners of real estate capital deployment in India, other asset classes such as hospitality, alternatives and retail witnessed remarkable surge in capital inflows, collectively accounting for over 20% of the total investment volumes during Q1 2026. Of the USD 0.35 billion cumulative investments across these three asset classes, foreign capital accounted for a notable 70% share. This reflects diversification of global capital particularly into alternative assets driven by superior risk-return profiles and long-term demand traction,” said Vimal Nadar, National Director & Head of Research, Colliers India. ’s flows and almost doubling when compared to the same period last year. Domestic investors drove more than 90% of the inflows into the office segment, witnessing investments more than tripling when compared to Q1 2025. This underscores growing confidence among Indian investors towards quality ready-to-move-in office assets with diversified tenant mixes, stable cash flows and better visibility of long-term returns in the country. 

The residential segment recorded the second-highest inflows at USD 0.3 billion during the quarter, witnessing a 7% YoY growth and comprising one-fifth of all quarterly investments. Investments into the hospitality, alternatives and retail segments also saw significant year-on-year growth, primarily from international investors.

“While office & residential segments continue to remain the front runners of real estate capital deployment in India, other asset classes such as hospitality, alternatives and retail witnessed remarkable surge in capital inflows, collectively accounting for over 20% of the total investment volumes during Q1 2026. Of the USD 0.35 billion cumulative investments across these three asset classes, foreign capital accounted for a notable 70% share. This reflects diversification of global capital particularly into alternative assets driven by superior risk-return profiles and long-term demand traction,” said Vimal Nadar, National Director & Head of Research, Colliers India.