NEW DELHI: Institutional investments in Indian real estate reached $1.4 billion during the January-March 2026 quarter, marking the highest first-quarter inflow since 2022, as reported by Vestian.
While there was a 62% decline in investments quarter-on-quarter due to a high previous base, a 74% year-on-year increase demonstrates continued investor interest in the face of global uncertainties.
Commercial properties led the investment scene, comprising around 80% of total inflows at over $1.1 billion, primarily driven by demand from global capability centres (GCCs), although there was a 51% sequential drop in this segment.
Residential investments plummeted to approximately $0.2 billion, reflecting a 53% quarter-on-quarter and 59% year-on-year decline. The industrial and warehousing sectors experienced limited activity, attracting only $22 million during the quarter.
Significantly, the period showcased a shift in investor demographics, with domestic investors contributing 72% of total inflows, up from 22% in the prior quarter, totaling over $1 billion. Conversely, the share of foreign investments fell to 13%, down from over 40% a year earlier.
Shrinivas Rao, CEO of Vestian, noted that domestic funds have been crucial in maintaining investment momentum amidst global uncertainties, while the demand for commercial properties has thrived due to expanding occupiers.
