New Delhi, Oct 8: India’s real estate sector continued to attract strong institutional interest in 2026, with investments reaching $5.9 billion during January-September, marking a 39 per cent year-on-year increase and the strongest nine-month inflow in recent years, according to a Colliers India report.
The latest investment trend highlights the growing confidence of investors in India’s property market despite global economic uncertainty and cautious capital allocation across international markets.
Domestic Capital Leads Investment Growth
Domestic investors emerged as the key driver of the market, contributing around $3.5 billion, or nearly 60 per cent of total institutional inflows during the nine-month period.
Domestic capital increased 59 per cent year-on-year, reflecting deeper participation by Indian investors and growing confidence in established real estate asset classes.
Foreign investment also remained significant, rising 17 per cent to about $2.4 billion. Overseas investors showed particular interest in developmental assets, alternative investments, hospitality and mixed-use projects, indicating continued appetite for long-term opportunities in India’s real estate market.
Office Real Estate Remains a Major Investment Focus
Office assets continued to lead institutional investment during the first nine months of 2026, accounting for 37 per cent of total inflows.
Strong leasing activity across high-quality Grade A office properties and expectations of sustained occupier demand are supporting investor interest in the segment. Residential and office assets together accounted for 46 per cent of domestic capital allocation during the third quarter.
At the same time, mixed-use and alternative assets each accounted for around 16-17 per cent of investments, highlighting the expanding range of opportunities available to institutional investors.
Bengaluru, Chennai and Delhi-NCR Attract Major Capital
Investment activity remained concentrated in key commercial markets. Bengaluru, Chennai and Delhi-NCR together accounted for nearly one-third of institutional real estate inflows during the nine-month period.
The report also noted a more than two-fold annual increase in multi-city transactions, suggesting that investors are increasingly looking beyond individual markets and considering broader portfolios and diversified opportunities.
Q3 Investment Activity Remains Strong
Institutional inflows stood at around $1.4 billion in the third quarter, up 12 per cent from the same period last year, although lower sequentially.
Domestic investors accounted for about $900 million during the quarter, representing nearly two-thirds of institutional investment. According to Colliers India, domestic investors continued to show a preference for core assets, while residential investments were largely directed towards development projects and office investments focused mainly on operational assets.
Stronger Domestic Participation Signals Market Maturity
The growing contribution from domestic investors is emerging as an important feature of India’s real estate investment landscape.
According to Colliers India, changing investor preferences across the risk-return spectrum, combined with deeper domestic capital pools, could support real estate investment in the coming quarters. An expected improvement in foreign investment volumes could further strengthen the market.
The latest numbers point to a broader shift in India’s property market, where institutional investors are increasingly looking beyond traditional residential assets towards offices, mixed-use developments, hospitality, alternative assets and other segments with long-term growth potential.
With strong office demand, expanding domestic capital and continued interest from global investors, India’s real estate sector is positioned to remain an important destination for institutional investment in the years ahead.