Published On Apr 22, 2026 at 01:00 PM IST

Capital inflows into Indian real estate surged 72% year-on-year to a record $5.1 billion in Q1 2026, driven largely by domestic investors and REITs. Developers and REITs together accounted for over 80% of total investments, with major cities dominating capital deployment.

NEW DELHI: Capital inflows into India's real estate sector rose to a record $5.1 billion in the January-March quarter of 2026, registering a 72% increase compared to $2.9 billion in the same period last year, according to a report by CBRE.

On a sequential basis, investments were up about 53% from $3.3 billion recorded in the October-December quarter of 2025, reflecting continued institutional interest in the sector despite global macroeconomic uncertainties.

Domestic investors dominated the investment landscape during the quarter, accounting for nearly 96% of total inflows. Developers led capital deployment with a 42% share, followed closely by real estate investment trusts (REITs), which contributed about 40%.

REIT investments crossed $2 billion during the quarter, marking a sharp increase over the previous quarter and highlighting growing institutional participation in income-generating real estate assets.

A large portion of the capital was directed towards office assets and land acquisitions, which together accounted for over 90% of total equity inflows. Within land deals, more than 70% of investments were focused on mixed-use and residential developments, while the remainder was allocated to office, warehousing and hospitality projects.

Bengaluru, Mumbai and Delhi-NCR together accounted for around 65% of the total investment inflows, underscoring continued investor preference for established urban markets.

Foreign capital inflows remained limited, with investments primarily originating from Singapore and Canada, which together accounted for the bulk of overseas participation.

The report also noted the creation of new investment and development platforms worth about $234 million during the quarter, indicating sustained interest in residential-led opportunities.

Source: realty.economictimes.indiatimes.com

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