NEW DELHI: Institutional investments in India’s real estate sector reached $1.9 billion in Q2 2026, marking a seven percent decrease year-on-year, as reported by Cushman & Wakefield.
Sequentially, this represents a 16 percent increase compared to the previous quarter. Total institutional investments for H1 2026 amounted to $3.5 billion, up six percent from H1 2025.
In Q2 2026, the office sector drew nearly $1 billion, constituting 51 percent of total investments, indicating four consecutive quarters where office assets led the real estate investment landscape.
Domestic institutions made up 54% of total Q2 investments, while foreign investors accounted for 46%. This marks the fourth consecutive quarter where domestic capital outpaced foreign investments.
For H1 2026, domestic institutional investments totaled $2.2 billion, representing 64% of overall investment activity, contrasted with foreign contributions of $1.3 billion at 36%.
In H1 2025, domestic investors comprised 43% of investment activity, while foreign investors held 57%. In Q2 2026, investment activity was primarily driven by multi-city portfolios, which represented 55% of total capital deployment.
Bengaluru led the individual city investments with a 23% share, followed by Chennai at 17%.
Private equity investors constituted 85% of total investments in Q2 2026, while investments from REITs made up 15%.
Somy Thomas, Executive Managing Director of Capital Markets at Cushman & Wakefield, noted that capital allocation is becoming increasingly specific to different asset classes.
“While office spaces continue to attract a diverse range of investors due to their maturity, liquidity, and stable income profiles, we are also witnessing an uptick in interest in the data center segment as investors focus on India’s growing digital infrastructure,” he stated.
