NEW DELHI: In the first half of 2026, domestic investor inflows in Indian real estate surged by 80% year-on-year, reaching $2.6 billion, which made up 57% of all institutional investments during that period, according to a report from Colliers India.
Overall institutional investments in the Indian real estate market amounted to $4.5 billion in H1 2026, representing a 50% increase compared to the same timeframe in 2025. This marks the highest capital inflow for the first half of a calendar year in six years.
In Q2 2026, institutional investments grew by 70% year-on-year to $2.9 billion, bolstered by both domestic and foreign investor engagement.
Domestic investments more than doubled from the previous year, reaching $1.3 billion in Q2 2026 and accounting for 46% of quarterly inflows. This growth was complemented by increased foreign investments driven by select significant transactions.
Foreign capital inflows totaled $1.9 billion in H1 2026, a 24% increase year-on-year, primarily due to strategic equity investments, stake acquisitions, and capital allocations in mixed-use and alternative assets.
“Institutional investments in India’s real estate sector amounted to $2.9 billion in Q2 2026, witnessing a 70% YoY rise, driven by robust participation from both domestic and foreign investors,” stated Badal Yagnik, CEO & Managing Director.
Yagnik added that domestic investors have consistently accounted for 40-60% of real estate investments over recent quarters.
Office assets attracted approximately $1.9 billion in H1 2026, making up over 40% of total capital inflows. Most of this was driven by domestic investors focusing on established assets.
In Q2 2026, investment in office assets increased nearly four times year-on-year, reaching $1.1 billion and comprising around 37% of the overall quarterly inflow.
Conversely, investments in residential properties fell by 43% year-on-year to $0.5 billion in H1 2026, as investors exhibited caution due to rising costs and sluggish housing sales.
Mixed-use and alternative assets each garnered around $0.8 billion in H1 2026, contributing close to 20% of total inflows, primarily driven by foreign investments through equity stake acquisitions.
Hospitality also saw gains, attracting $0.3 billion in H1 2026, marking over threefold annual growth from a lower base, mainly led by foreign investors.
“During Q2 2026, office assets accounted for approximately 37% of total capital inflows at $1.1 billion, followed by mixed-use and alternative segments,” noted Vimal Nadar, National Director & Head of Research.
Nadar indicated that investors favored operational office assets, and the recent listing of an additional office REIT further boosts momentum in India’s office market.
Among tier-I cities, Chennai and Bengaluru attracted a combined total of $1.2 billion in real estate investments in H1 2026, making up about 27% of total inflows, with each city receiving about $0.6 billion, predominantly in office assets.
Multi-city deals constituted 46% of overall investment inflows during H1 2026. Tier-II and tier-III cities such as Coorg, Hosur, Coimbatore, Kochi, and Ujjain also experienced capital inflows, particularly in hospitality, industrial and warehousing, and residential sectors.
