India's real estate attracts $4.5 billion institutional investments, up 50 pc
New Delhi, July 3
Institutional investments in India's real estate sector rose 50 per cent year-on-year to $4.5 billion during the first half of 2026 -- the strongest first-half performance in six years - despite the West Asia crisis, a report showed on Friday.
According to the report by real estate consultancy Colliers, quarterly investments remained robust, surging 70 per cent YoY to $2.9 billion in the April-June quarter.
Domestic investors led the market with $2.6 billion in investments, accounting for 57 per cent of total inflows, while foreign investments rose 24 per cent YoY to $1.9 billion.
"Domestic investors have consistently contributed up to 60 per cent of institutional investments over the past few quarters, while foreign investors are becoming increasingly selective and expanding their focus beyond traditional real estate assets," said Badal Yagnik, CEO and Managing Director, Colliers India.
Office assets remained the largest investment destination during H1 2026, with domestic investors driving most of the investments in operational office properties.
Mixed-use and alternative assets attracted around $0.8 billion each during the first half of the year and contributed nearly one-fifth of total investments individually.
In addition, the hospitality segment recorded investments of $0.3 billion, more than three times higher than a year ago.
In contrast, institutional investments in the residential segment declined 43 per cent YoY to $0.5 billion as investors remained cautious amid rising costs and moderating housing sales.
Region-wise, Chennai and Bengaluru together attracted around $1.2 billion, accounting for about 27 per cent of institutional investments during H1 2026, the report said.
Multi-city transactions represented 46 per cent of the total investments, while Tier II and Tier III cities witnessed notable capital deployment across hospitality, industrial and residential projects, it added.
— IANS
Reader Comments
The focus on tier-2 and tier-3 cities is promising. But residential investments dipping 43% is a red flag 🚨. Families like mine are priced out of the market. Need more affordable housing schemes, not just luxury projects.
50% growth despite global uncertainty? That's the India story! 🇮🇳 We're becoming a safe haven for investors. But government should ensure transparency - too much black money still flows in real estate.
Finally some good news! But why did residential investments fall? Is RERA (Real Estate Regulation Act) not working? Need stricter implementation to protect homebuyers from builders who delay projects.
Chennai and Bengaluru doing well! 👏 As a Bengalurean, I see new tech parks everywhere. But infrastructure can't keep pace - traffic jams and water shortages. Need holistic planning alongside investment inflows.
Solid numbers! The focus on office assets and data centres is smart. But curious if foreign investors will return post-crisis - the 24% growth is modest. India needs to improve ease of doing business further to sustain this momentum.
Hospitality sector tripling investments is interesting - third wave of tourism maybe? But ground reality in smaller towns: taxes on
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