Institutional investments in Indian real estate reach $1.9 billion in April-June: Report
New Delhi, July 21
Institutional investments in India's real estate sector remained resilient and reached $1.9 billion in the second quarter of 2026, up 16 per cent quarter‑on‑quarter, a report said on Tuesday.
The report from Cushman & Wakefield said investment activity moderated by 7 per cent year-on year (YoY) and the overall market continued to witness consistent deployment, supported by strong participation from domestic investors and sustained preference for consistent income-generating assets.
In H1 2026, institutional investments totalled $3.5 billion, up 6 per cent from H1 2025 reflecting continued confidence in India's long-term real estate fundamentals despite global macroeconomic uncertainties, the report said.
"Looking ahead to H2 2026, institutional investment activity is expected to remain stable, supported by India's strong macroeconomic fundamentals and continued infrastructure-led growth," the firm forecasted.
Office assets dominated Q2 flows, attracting nearly $1 billion and accounting for 51 per cent of total investments, marking the fourth consecutive quarter that office assets led the market, the report added.
The sustained investor preference underscores continued confidence in the office sector's long-term fundamentals and its ability to generate stable income.
Investor interest in office real estate continues to be underpinned by strong occupier demand, particularly from Global Capability Centres (GCCs), tightening vacancy levels across major office markets, and continued rental growth in premium micro-markets.
Data centres emerged as the second‑largest recipient of capital, accounting for 40 per cent of Q2 investments.
The sector's growing share reflects increasing investor interest in digital infrastructure assets, supported by rising demand driven by rapid AI adoption, cloud expansion and data localisation requirements.
For H1, investments by domestic institutions stood at $2.2 billion, accounting for 64 per cent of total investment activity, compared to a 43 per cent share in the previous year.
Somy Thomas, Executive Managing Director, Capital Markets, Cushman & Wakefield, said that investors are increasingly pursuing portfolio and multi-city opportunities to achieve greater scale and diversification.
Foreign investments totalled $1.3 billion, representing the remaining 36 per cent, down from 57 per cent in the corresponding period last year.
Private equity investors remained the primary source of institutional capital during Q2 2026, accounting for 85 per cent of total investment volumes, while REIT-led investments contributed 15 per cent.
— IANS
Reader Comments
Data centres getting 40% investment is interesting. With AI and digital India pushing ahead, this makes sense. But I worry about the environmental impact of all these power-hungry data centres in a country already facing water and electricity issues. Hope they're using green energy.
Office sector still king, ab tak! GCCs are hiring like crazy in Bengaluru and Hyderabad, so no surprise there. But with WFH still a thing in many companies, shouldn't we be seeing more flexible spaces and co-working investments? Just saying...
Interesting shift from foreign to domestic capital. India's real estate story is maturing. The 7% YoY dip is a bit concerning though — global uncertainties still weighing in. Hope H2 picks up as predicted.
$3.5 billion in H1 is no joke! But as a Mumbai guy, I can't help but feel this is all concentrated in top cities. What about tier-2 and tier-3 cities? Real estate there is booming too but institutional money still shy. Hope this changes. 🏢
Private equity dominating at 85% — classic. Meanwhile, retail investors like us can barely afford a 1BHK in a decent locality. The housing crisis for the middle class is real. Wish some of this institutional money went into affordable housing projects with real intent, not just tax-saving schemes.
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