NEW DELHI: India’s real estate sector has witnessed equity inflows of $30.7 billion from 2024 to the first quarter of 2026, marking an 88% rise from $16.3 billion in 2022-2023, as per a report by CBRE South Asia.
Land and development properties, along with existing office assets, comprised over 75% of the total capital influx during this timeframe. Institutional investors accounted for around 30% of the investments, significantly increasing their capital deployment compared to the previous two years, primarily targeting office, retail, and logistics assets.
The report further indicated that approximately 6,025 acres of land were secured for greenfield projects between 2024 and Q1 2026, translating to an estimated capital investment of about $13 billion. More than 80% of this funding was allocated for residential, mixed-use, and office developments, while the remainder was directed to warehousing, data centers, and retail initiatives.
Public markets also experienced heightened activity, with Real Estate Investment Trusts (REITs) investing $2 billion in Q1 2026 alone, showing significant growth both sequentially and annually. Total REIT investments reached $3.8 billion from 2024 to Q1 2026, a 66% increase compared to the previous two-year period.
In the debt market, bank lending to commercial real estate rose by 16% year-on-year from March 2025 to February 2026. Non-banking financial companies extended their loans to the sector to exceed ₹1 lakh crore in September 2025, hitting a five-year high, according to RBI data.
Overall, debt financing in the real estate sector surpassed $146 billion during the 2024–Q1 2026 period, with Mumbai, Delhi-NCR, and Bengaluru collectively accounting for over 60% of the total inflows. Non-tier I cities represented about 8% of this activity.
The report also highlighted a rising interest from investors in alternative real estate sectors. Data centers continued to attract significant investment, while the hospitality sector saw around $0.46 billion in investments in 2025, indicating a strong year-on-year increase. The healthcare, pharmaceuticals, and biotechnology sectors together recorded over $8 billion in mergers, acquisitions, and private equity investments during the year.
Additionally, segments such as flexible workspaces and senior living are witnessing increased institutional involvement, indicating a diversification of real estate investments beyond traditional asset types.
