Institutional investment in India’s real estate sector stood at $1.6 billion during January-March 2026, growing 26 per cent year-on-year, but falling sharply by 52 per cent from the previous quarter amid the Middle East conflict.Total investments stood at $1.27 billion in January-March 2025 and $3.35 billion in the October-December quarter last year, according to reports by Cushman & Wakefield and PTI.Domestic investors invested $1.21 billion in the first quarter of 2026, compared with $0.75 billion a year ago and $2.71 billion in the previous quarter, the consultancy said.Foreign investment stood at $0.39 billion during January-March 2026, down from $0.52 billion in the same period last year and $0.61 billion in October-December.“Domestic investors have now accounted for the lion’s share of institutional investments in four of the last five quarters, underscoring the continued rebalancing of capital flows.“At a time when foreign capital remains sensitive to global macroeconomic and geopolitical developments, the increasing depth and stability of domestic capital is helping to provide stability and continuity to investment activity,” Cushman & Wakefield said.Somi Thomas, Executive Managing Director – Capital Markets, Cushman & Wakefield, said domestic capital has been particularly active in the office sector and the momentum could further strengthen.“At the same time, the consistent performance of REITs has strengthened investor confidence in income-producing real estate, while relatively low returns in equity markets have prompted a rebalancing of capital toward more stable, yield-driven assets,” Thomas said.Among cities, Delhi-NCR attracted 28 per cent of total quarterly investments in Q1 2026, followed by Chennai at 17 per cent and Bengaluru at 14 per cent.Commenting on the trend, Umesh Gowda HA, founder and chairman of Sanjeevini Group, said Bengaluru’s shareholding reflects the city’s strong fundamentals and appeal to long-term investors.“Continued inflows of domestic capital are helping to maintain project pipelines, support new developments and maintain pricing discipline even amid global uncertainties,” Gowda said.
