





New Delhi- India's institutional real estate market recorded a strong performance in the first half of 2026, attracting nearly $4.3 billion in investments across a record 54 deals, marking a 23 per cent year-on-year increase, according to a report released on Thursday by commercial real estate services firm JLL.
The report highlighted a significant shift in the investment landscape, with domestic institutional investors accounting for 64 per cent of the total capital inflows—the highest share ever recorded. Domestic investors contributed around $2.8 billion during the period, helping offset a 37 per cent decline in foreign institutional investments.



Lata Pillai, Senior Managing Director and Head of Capital Markets, India at JLL, said the surge in domestic investments, led by private equity funds and Real Estate Investment Trusts (REITs), reflects the growing maturity of India's investment ecosystem.
"This growth, driven by domestic PE players and REITs, signals the early stages of maturation of India's domestic investment landscape and substantially reduces vulnerability to external shocks," she said.
Pillai added that as global geopolitical conditions improve, foreign investors are expected to step up their investments in India's real estate sector. A stronger domestic investor base combined with renewed international participation is likely to create a more balanced and resilient investment environment.
The report noted that after a relatively slow first half of 2025, the market rebounded strongly in the second half, helping institutional investments reach a record $10.5 billion for the full calendar year 2025.
While investment volumes remained robust, the average deal size fell 40 per cent to $80 million in H1 2026. According to the report, investors preferred spreading their capital across a larger number of smaller transactions to minimise risk.

Domestic institutional investments surged 165 per cent compared to the same period last year, underscoring the growing confidence of Indian investors in the property market.
JLL attributed the decline in foreign investment to global economic uncertainty, currency fluctuations, inflationary pressures and the need for international funds to rebalance their portfolios.
The report also noted that the reduced dependence on overseas capital has strengthened the resilience of India's real estate market against global financial disruptions.
Domestic private equity funds and REITs together accounted for 72 per cent of domestic institutional investments during the first half of 2026. The increasing role of REITs has also accelerated demand for high-quality, income-generating core assets, a trend that gathered pace in 2025 and has continued into this year.
WIth inputs from IANS

