New Delhi, April 2 The real estate sector in India recorded institutional investments worth $1.6 billion in the January-March quarter of 2026, a 25 per cent rise year-on-year, driven largely by a surge in domestic capital, according to a report released on Thursday.
According to Colliers, Indian investors led the charge, with pumping in $1.2 billion -- up 57 per cent year-on-year -- and accounting for three-fourths of the total inflows. This suggests a significant shift from the typical domestic share of 20-50 per cent seen in the previous four to five years.
Moreover, foreign investments moderated to $0.4 billion, a 23 per cent annual decline, as global investors adopted a cautious stance amid uncertainties in trade, crude, and commodity markets.
The report also highlighted that office assets remained the top draw and attracted $0.8 billion or half of the quarterly inflows -- nearly double the levels seen in Q1 2025.
In addition, domestic investors drove over 90 per cent of office-segment inflows, with their investments rising more than threefold on an annual basis.
Geographically, Delhi NCR and Bengaluru together accounted for 46 per cent of total investments. Delhi-NCR led with $0.4 billion, followed by Bengaluru at $0.3 billion, with both markets primarily driven by large office transactions in operational assets.
Multi-city investments accounted for nearly one-third of quarterly inflows at close to $0.5 billion.
The residential segment attracted $0.3 billion, registering 7 per cent annual growth and accounting for one-fifth of total quarterly investments.
Meanwhile, hospitality, alternatives, and retail segments collectively drew over 20 per cent of total inflows, with foreign capital accounting for 70 per cent of cumulative investments across these three asset classes.
Despite a sequential decline from Q4 2025, overall inflows in Q1 2026 stood 64 per cent higher than the average first-quarter volumes since 2020.
"Institutional investments in India's real estate market continue to remain resilient, supported by strong domestic demand across asset classes," said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.
He added that while global investors are likely to remain cautious in the near term, India's favourable demographics and consumption-driven economy would keep its positioning in the wider Asia-Pacific region intact.
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