Domestic investors drive India’s $1.6 billion institutional real estate inflows in Q1

New Delhi, April 28 India’s institutional real estate investment activity totalled $1.6 billion in Q1 2026, marking a 26 per cent year-on-year increase and led by domestic investors who accounted for 76 per cent of inflows, a report said on Tuesday.

Domestic institutional capital increased, surpassing foreign inflows for the third consecutive quarter and signalling a sustained shift, the report from Cushman & Wakefield said, also noting that institutional activity moderated 52 per cent quarterly.

Over the past three quarters, domestic investors have consistently accounted for the majority of institutional investment activity, with their share rising from roughly 63 per cent in Q3 2025 to around 81 per cent in Q4 2025, and remaining elevated at about 76 per cent in Q1 2026.

Overall institutional investment activity in the Indian real estate sector during Q1 2026 also marked the highest first‑quarter deployment recorded since 2021.

Private equity remained the main channel, accounting for 74 per cent of institutional inflows, while Real Estate Investment Trusts made up the remaining 26 per cent.

The office segment attracted the largest share of capital with $1 billion inflows, or 64 per cent of the quarter’s investments. Hospitality sector followed at 13 per cent and residential at 9 per cent, underscoring the continued prominence of commercial real estate within institutional portfolios.

Delhi-NCR drew 28 per cent of Q1 investment, with Chennai and Bengaluru attracting 17 per cent and 14 per cent respectively.

The sustained dominance of domestic capital is driven by growing confidence in the underlying fundamentals of the market and a more disciplined, institutional approach to deployment, said Somy Thomas, Executive Managing Director-Capital Markets, Cushman & Wakefield.

Domestic capital has been particularly active in the office segment, and this momentum is likely to increase, due to higher leasing, occupancy and income visibility, the report forecasted.

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