- July 12, 2026
Real Estate: Institutional Investment In India’s Realty Sector Jumps 50% To $4.5 Billion In H1 2026, Says Report
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India’s real estate sector receives $2.9 billion from institutional investors in April-June 2026, which is a 70% year-on-year growth, according to a report by Colliers India.
Amongst the Tier I cities, Chennai & Bengaluru together saw $1.2 billion of real estate investments, cumulatively driving about 27% of the inflows during H1 2026.
With the West Asia crisis exerting pressure on investment and trade flows globally, India’s real estate sector remained resilient, receiving $2.9 billion from institutional investors in April-June 2026, which is a 70% year-on-year growth. According to a report by Colliers India, institutional investments in the real estate sector touched $4.5 billion during H1 2026, marking a 50% rise compared to the corresponding period of 2025.
“This strong performance was underpinned by growing confidence of domestic investors, opportunistic deployment of foreign capital and surge in investments within alternative & mixed-use assets,” the report said.
During H1 2026, the office segment continued to dominate capital deployment, attracting around $1.9 billion of investments and accounting for over 40% of the total capital inflows. Inflows in the residential segment dropped 43% in H1 2026 to $0.5 billion.
Amongst the Tier I cities, Chennai & Bengaluru together saw $1.2 billion of real estate investments, cumulatively driving about 27% of the inflows during H1 2026.
Umesh Gowda H.A., chairman and founder of Sanjeevini Group, said Bengaluru continues to stand out as one of the country’s strongest real estate markets, driven by sustained expansion of the technology and GCC ecosystem, robust employment generation, and steady demand for both residential and commercial assets.
“With healthy housing absorption, strong rental demand, robust office leasing activity and consistent capital appreciation, Bengaluru offers a balanced investment opportunity across market cycles. As domestic capital continues to play a larger role, it is expected to further accelerate the development of high-quality real estate projects and reinforce Bengaluru’s position as a preferred destination for long-term real estate investments,” he added.
The Colliers report further emphasised the growing significance of domestic investment, with capital deployment rising 80% YoY to $2.6 billion and accounting for about 57% of the total inflows. Foreign capital inflows stood at $1.9 billion during H1 2026, up 24% YoY.
Lalit Parihar, managing director of Aaiji Group, said, “The growing dominance of domestic investors points to another important aspect- growing geographical spread. Today’s funds are looking at even tier 2 cities and builders which is a good sign for the increasing market depth and opportunities for developers, investors and homebuyers. The trend will encourage more participation in markets beyond the metropolitan cities.”
Echoing similar sentiments, Ankur Jalan, chief executive officer of Golden Growth Fund (GGF), said the strong participation of domestic investors signals conviction in India’s long-term economic fundamentals, regulatory transparency, and the resilience of income-generating real estate assets.
“We are witnessing a structural shift where local capital is playing a leading role in shaping investment activity across asset class. This trend is expected to support sustained capital deployment and create attractive opportunities for alternative investment platforms,” Jalan said.
Mixed-use assets received $0.8 billion in investments, up 34%; alternative assets $0.8 billion, up 982%; and hospitality $0.3 billion, up 217% in H1 2026.
Robin Mangla, president of M3M India, said, “For developers, this presents a significant opportunity to create integrated mixed-use destinations that combine retail, residential, and commercial spaces, catering to evolving consumer preferences while generating long-term value for occupiers, investors, and the surrounding communities.”
Tier II/III cities witnessed significant capital deployment, particularly in hospitality, industrial & warehousing & residential segments during H1 2026.
The report also added that over the past few quarters, domestic investors have expanded their portfolios across asset classes, driving 40-60% of the real estate investments on a consistent basis. Foreign investors, meanwhile, although increasingly selective are likely to further tap into alternative and mixed-used segments. This balanced interplay of foreign and domestic investors will be crucial in charting the next growth phase of Indian real estate, especially during the times of uncertainty in capital deployment.
About the Author
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalis…Read More
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