Global Investors to Pour $144B into Real Estate in 2026, India a Key Target

Knight Frank's latest 'Active Capital Survey' revealed that 87 per cent of investors (by AUM) intend to increase direct commercial real estate investment in 2026, while 62 per cent expect to be net buyers, highlighting strong acquisition appetite globally.

The resurgence of investor interest is being led globally by a renewed focus on Core and Core-plus strategies, with $37 billion of planned global investment targeting Core assets.

"Global capital is returning, but it is far more disciplined than in previous cycles, India is increasingly being viewed as a defensive growth market, supported by strong occupier demand, improving asset quality and long-term structural drivers," said Shishir Baijal, International Partners, Chairman and Managing Director, Knight Frank India.

This shift closely aligns with India's evolving commercial real estate market, particularly in Grade A office assets across major cities such as Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune and Chennai.

Globally, offices have re-emerged as the most targeted asset class, with 69 per cent of investors planning allocations in 2026.

However, investors are highly selective, favouring well-located, ESG-compliant assets that meet modern workplace requirements, while avoiding assets facing long-term obsolescence.

This trend mirrors India's experience, where leasing momentum continues to be driven by Global Capability Centres (GCCs), technology firms and domestic corporates, collectively accounting for approximately 75 per cent, thereby reinforcing confidence in high-quality office stock, said the report.

Beyond offices, living sectors are the second most targeted globally, with 65 per cent of investors planning allocations, attracted by demographic tailwinds and defensive income characteristics.

"While institutional living segments such as rental housing and student accommodation remain nascent in India, they represent a significant medium- to long-term opportunity given rapid urbanisation and a young population profile," the report mentioned.

Retail has also returned to investor focus globally, with 56 per cent of investors planning allocations, reflecting stabilisation and opportunities in dominant, experience-led shopping centres.

Operational real estate sectors, including data centres, infrastructure and healthcare, are gaining traction globally as investors seek exposure to long-term structural tailwinds.

In India, rising digital adoption, expanding healthcare needs and sustained public infrastructure investment are translating into growing interest across these segments.

- IANS