India’s Real Estate Attracts $5.9 Billion Institutional Investment in Nine Months, Up 39%

Institutional investment in Indian real estate rose 39 per cent year-on-year to $5.9 billion during January-September 2026, marking the strongest nine-month inflow in recent years, according to a report by Colliers India.

Domestic investors emerged as the biggest contributors, accounting for $3.5 billion, or nearly 60 per cent of total institutional investment during the first nine months of the year. Domestic capital inflows jumped 59 per cent year-on-year, highlighting growing investor confidence in India's core real estate market.

The strong inflow comes despite a challenging global economic environment, with concerns over growth and greater caution around capital allocation continuing to influence investment decisions across international markets.

Foreign investment in Indian real estate increased 17 per cent year-on-year to around $2.4 billion. A significant portion of overseas capital was directed towards development-focused assets, as investors continued to seek long-term returns from alternative, hospitality and mixed-use projects.

Investment during the July-September quarter stood at $1.4 billion, an increase of 12 per cent from the same period last year. However, quarterly inflows declined 51 per cent sequentially compared with the preceding quarter.

"In Q3 2026, domestic investors drove about $0.9 billion inflows, accounting for nearly two-thirds of the total investments. Local investors continue to prefer core assets, with residential & office segments collectively accounting for 46 per cent of the domestic capital allocation during the quarter," said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.

Yagnik said residential investment was largely focused on development projects, while office-sector investments were primarily directed towards operational assets.

Office real estate remained the largest investment category during the nine-month period, accounting for 37 per cent of total institutional inflows. Mixed-use and alternative assets followed, each attracting around 16-17 per cent of investments.

The strong performance of the office segment reflects continued leasing activity across high-quality Grade A properties. Expectations of sustained long-term demand have also helped maintain investor interest in the segment.

Geographically, Bengaluru, Chennai and Delhi-NCR together accounted for nearly one-third of total institutional inflows during the nine-month period. At the same time, multi-city transactions recorded more than a two-fold increase compared with the corresponding period last year, indicating a broader distribution of investment activity beyond the country's major real estate markets.

Colliers India expects changing investor preferences across different risk-return categories, combined with the increasing depth of domestic capital, to support real estate investment in the coming quarters. The report also expects foreign investment volumes to gain momentum as international investors continue to seek opportunities in India's expanding real estate market.

The latest figures underline the growing role of domestic institutional capital in supporting India's property market, while continued foreign interest suggests that the sector remains attractive as a long-term investment destination despite global economic uncertainties.