NEW DELHI: Domestic investor inflows in Indian real estate rose 80% year-on-year to $2.6 billion in H1 2026, accounting for 57% of total institutional investments during the period, according to a report by Colliers India.
Overall institutional investments in Indian real estate stood at $4.5 billion in H1 2026, up 50% from the corresponding period of 2025. The company said capital inflows reached a six-year high for the first half of a calendar year.
In Q2 2026, institutional investments rose 70% year-on-year to $2.9 billion, supported by domestic and foreign investor participation.
Domestic investments more than doubled annually to $1.3 billion in Q2 2026, accounting for 46% of the quarterly inflows. Foreign investments also increased during the quarter, led by select large transactions.
Foreign capital inflows stood at $1.9 billion in H1 2026, up 24% year-on-year, supported by strategic equity investments, stake acquisitions and capital allocation across mixed-use and alternative assets.
“Institutional investments in India’s real estate sector stood at $2.9 billion in Q2 2026, witnessing a 70% YoY rise. This growth was led by equally strong participation from domestic as well as foreign investors,” said Badal Yagnik, CEO & managing director of the company.
He said domestic investors have consistently contributed 40-60% of real estate investments over the past few quarters.
Office assets attracted about $1.9 billion of investments in H1 2026, accounting for over 40% of total capital inflows. Domestic investors drove most of the inflows in the office segment, largely into standing assets.
In Q2 2026, investments in office assets surged nearly four times year-on-year to $1.1 billion, accounting for about 37% of overall quarterly inflows.
Residential investments declined 43% year-on-year to $0.5 billion in H1 2026. Colliers said investors in the segment remained cautious due to cost pressures and moderation in housing sales.
Mixed-use assets and alternatives each attracted about $0.8 billion in H1 2026, with both segments contributing close to one-fifth of total inflows during the period. Foreign investors drove most of the activity in these segments through equity stake purchases.
Hospitality attracted $0.3 billion in H1 2026, recording more than three-fold annual growth on a lower base, largely led by foreign investors.
“During the second quarter, office assets drove about 37% of the overall capital inflows at $1.1 billion followed by mixed-use and alternative segments,” said Vimal Nadar, national director & head of research of the company.
He said investors largely preferred operational office assets, and the recent listing of another office REIT reinforces momentum in India’s office market.
Among tier-I cities, Chennai and Bengaluru together attracted $1.2 billion of real estate investments in H1 2026, accounting for about 27% of total inflows. Each city received about $0.6 billion, with office assets contributing 85-95% of investments.
Multi-city deals accounted for 46% of overall investment inflows during H1 2026. Tier-II and tier-III cities such as Coorg, Hosur, Coimbatore, Kochi and Ujjain also saw capital deployment, particularly in hospitality, industrial and warehousing, and residential segments.
