India’s real estate sector witnessed record capital inflows totalling $9.5 billion in the third quarter (July-September/Q3) of 2026, as rising investor demand for data centres prompted foreign investors to make a strong comeback, according to a report by S&P 500-listed CBRE group.
“Global investors have returned with conviction, and institutional capital is now flowing well beyond offices and land into data centres,” said Anshuman Magazine, chairman and chief executive officer for India, Southeast Asia, Middle East, and Africa at CBRE.
With a strong showing in Q3, total capital inflows during the first nine months touched $18.6 billion, already surpassing the full-year inflows of $14.2 billion that the sector saw in 2025.
Foreign investors accounted for around 59 per cent of total inflows, with investors from the US alone contributing 90 per cent of foreign capital inflows, followed by investors from Canada, Singapore, and Japan, according to the report.
The quarter also saw increased participation from institutional investors, which accounted for around 79 per cent of total inflows, up 28 per cent from the previous quarter. Mumbai, followed by the Delhi-National Capital Region and Chennai, accounted for a cumulative share of about 53 per cent of investment inflows during the quarter.
In its India Market Monitor – Investments for Q3 2026, the group chalked up the upswing in capital inflows to rising investor appetite for data centres and continued capital deployment into built-up office assets and land/development sites. Data centres, built-up office assets, and land/development sites together accounted for nearly 91 per cent of total capital deployed during Q3 2026.
The group said increased investment in data centres reflects strong investor confidence in the asset class and that it expects demand to be supported by increasing global and domestic institutional allocations towards alternative assets.
“India’s real estate investment landscape continues to strengthen, with investors deploying capital across both established and emerging asset classes. Global and domestic investors are showing clear intent to grow their portfolios in the country,” said Gaurav Kumar, managing director and co-head, capital markets (India), at CBRE, adding that he expects the momentum to sustain in future quarters owing to a mature and increasingly diverse capital pool.
However, according to the group, geopolitical uncertainties and interest-rate shifts remain key concerns, even as it expects investment activity in 2026 to close on a strong note.
