New Delhi: India’s institutional real estate market recorded a strong start to 2026, with total investments touching $1.6 billion in the first quarter — a 26% rise compared to the same period last year. According to a report by Cushman & Wakefield, domestic investors played a decisive role, contributing 76% of the total inflows.
This marks the third consecutive quarter where domestic capital has outpaced foreign investments, reflecting a clear and sustained shift in market dynamics. Over recent quarters, the share of domestic investors has steadily climbed — from about 63% in Q3 2025 to 81% in Q4 2025, before settling at 76% in Q1 2026.
Despite this annual growth, overall investment activity saw a 52% dip compared to the previous quarter, suggesting some short-term moderation. Even so, this quarter recorded the highest first-quarter investment level since 2021, indicating underlying strength in the sector.
Private equity continued to dominate as the preferred investment route, accounting for 74% of total inflows, while Real Estate Investment Trusts (REITs) made up the remaining 26%.
The office segment remained the top choice for investors, attracting around $1 billion — or 64% of total investments — highlighting continued confidence in commercial real estate. The hospitality sector followed with a 13% share, while residential assets accounted for 9%, pointing to a diversified yet office-led investment landscape.
Regionally, Delhi-NCR emerged as the biggest magnet for capital, drawing 28% of total investments. Chennai and Bengaluru followed with 17% and 14% shares respectively.
Somy Thomas, Executive Managing Director, Capital Markets at Cushman & Wakefield, noted that rising domestic participation reflects stronger confidence in market fundamentals and a more structured, institutional investment approach. He added that domestic investors are particularly bullish on office assets, driven by improving leasing activity, higher occupancy rates, and stable income visibility.
With domestic capital continuing to strengthen its foothold, India’s real estate sector appears to be entering a phase of greater resilience and maturity.
With inputs from IANS