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India's Real Estate Investment Surges 37% in Q1 2026, Core Assets Lead Growth

India's real estate investment market recorded a 37% year-on-year increase in transaction volumes to USD 1.7 billion in the January-March quarter of 2026. Core asset investments surged 178% to USD 1.03 billion, reflecting a shift toward stable, income-generating properties. Domestic capital played a key role, with Indian REITs and InvITs deploying USD 2.8 billion, accounting for 47% of total domestic institutional inflows. JLL expects the momentum to continue, supported by strong economic fundamentals and a maturing REIT ecosystem.

Key Points: India Real Estate Investment Up 37% in Jan-Mar 2026

  • Real estate investment rose 37% YoY to USD 1.7 billion in Jan-Mar 2026
  • Core asset investments surged 178% to USD 1.03 billion
  • Domestic capital drove growth, reducing dependence on foreign funds
  • Record institutional inflows of USD 19.4 billion in 2024-2025
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India's real estate investment rises 37% YoY in Jan-Mar period, domestic capital drives growth: JLL

India's real estate investment rose 37% YoY to USD 1.7 billion in Q1 2026, driven by domestic capital and a 178% surge in core asset acquisitions, says JLL.

"India's investment market continues to demonstrate remarkable resilience amid global headwinds. - Lata Pillai"

Mumbai, May 4

The real estate investment market in the country continued its strong momentum in 2026, with transaction volumes rising 37 per cent year-on-year to USD 1.7 billion in the January-March quarter, according to JLL, a global professional services firm in real estate investment management.

It highlighted that the growth came despite extended decision-making timelines due to global macroeconomic uncertainties, reflecting the resilience of India's real estate sector and its continued appeal to institutional investors.

It stated, "India's real estate investment market has sustained its exceptional momentum into 2026, with first quarter (January - March) transaction volumes reaching USD 1.7 billion"

A key trend observed during the quarter was a sharp shift in investor preference towards core assets. Investments in core assets surged 178 per cent to USD 1.03 billion, indicating rising demand for stable, income-generating properties.

This trend has continued into the second quarter, with core asset deals already reaching USD 1.48 billion, signalling sustained investor confidence.

Lata Pillai, Senior Managing Director and Head of Capital Markets at JLL India, said the sector continues to show strong resilience despite global challenges.

"India's investment market continues to demonstrate remarkable resilience amid global headwinds. The 178 per cent surge in core asset acquisitions reflects a fundamental shift toward stable, income-generating properties, while the office sector's dominance underscores strong operational fundamentals," she said.

JLL noted that the real estate sector witnessed record-breaking institutional inflows during 2024 and 2025, with combined investments of USD 19.4 billion, marking the strongest performance period in India's real estate investment history.

The report said this shift reduces dependence on foreign capital and strengthens the sector's resilience amid global uncertainties. Indian Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have played a key role, deploying USD 2.8 billion, which accounts for 47 per cent of total domestic institutional capital. Private equity players have also contributed significantly, with a 42 per cent share.

Looking ahead, JLL expects India's real estate investment market to maintain strong momentum, supported by robust economic fundamentals, expanding infrastructure, and increasing investor confidence. The growing role of domestic capital and a maturing REIT ecosystem are expected to help the sector navigate global volatility while sustaining growth in the coming quarters.

- ANI

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Reader Comments

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Jennifer L
As someone who tracks global emerging markets, India's real estate resilience is noteworthy. The shift to core assets (up 178%!) signals a maturing market where institutional investors want stable yields, not just speculative growth. The office sector dominance reflects genuine economic activity. This bodes well for long-term FII confidence too.
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Manish T
Interesting, but let's not get carried away. USD 1.7 billion in a quarter sounds big, but consider our population and infrastructure needs. Real estate growth is good, but where are the jobs that allow common people to afford these properties? Many developers still sit on unsold inventory. The real test is whether this investment translates into affordable housing for the middle class, not just premium office spaces. A slightly critical perspective here.
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Sneha F
As a Mumbai resident, I see these new office buildings going up everywhere in BKC and Lower Parel. But the housing prices for ordinary folks? Sky high! Domestic capital is good, but I hope some of this investment flows into rental housing and co-living spaces that young professionals like me can afford. Otherwise it's just big money moving between big players. 😕
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Thomas Y
Impressive numbers indeed. Having worked in real estate PE globally, what stands out is the 47% contribution from domestic REITs/InvITs. That's a structural shift away from the old model of relying on foreign capital. India's capital markets are deepening. The 178% core asset growth also shows investors are chasing quality - that's a sign of maturity, not froth. Smart money is flowing in.
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Nisha Z

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