Gurugram: India’s real estate sector continued to attract strong institutional interest in Q1 2026, with investments rising 25 per cent year-on-year to $1.6 billion, led by robust domestic participation despite global uncertainties.
Domestic inflows surged 57 per cent annually to $1.2 billion, accounting for nearly three-fourths of total in-vestments—well above the 20–50 per cent share seen over the past few years. Despite a quarter-on-quarter (Q-o-Q) moderation, overall inflows remained 64 per cent higher than the average first-quarter levels since 2020, highlighting sustained optimism across asset classes.
Foreign investments, however, declined 23 per cent YoY to $0.4 billion, reflecting caution amid volatility in global trade and commodity markets. Analysts expect overseas investors to adopt a wait-and-watch approach in the near term, though strong domestic demand is likely to cushion the impact. “Institutional investments remain resilient, supported by strong domestic demand. The current cau-tion among global investors is likely to be temporary, given India’s favourable demographics and con-sumption-driven economy,” said Badal Yagnik.
At the city level, Delhi-NCR led with over $0.4 billion in inflows, followed by
Bengaluru at $0.3 billion. Together, the two markets accounted for 46 per cent of total investments, driven largely by office transac-tions. Multi-city deals contributed nearly one-third of inflows, with hospitality and residential assets gaining traction across markets.
Office assets dominated with $0.8 billion, accounting for half of total investments and nearly doubling year-on-year. Domestic investors contributed over 90 per cent of these inflows, reflecting strong confidence in high-quality, income-generating office assets. Residential investments stood at $0.3 billion, up 7 per cent annually.
Meanwhile, hospitality, retail and alternative segments together accounted for over 20 per cent of total in-flows, with foreign capital contributing around 70 per cent, indicating diversification into emerging asset clas-ses, said Vimal Nadar, National Director & Head of Research, Colliers India. Mpost