NEW DELHI: Institutional investments in Indian real estate increased 39% year-on-year to $5.9 billion during January-September 2026, the highest nine-month investment volume in recent years, according to a report by Colliers India.
Domestic investors contributed around $3.5 billion, or close to 60% of total investments, registering a 59% year-on-year increase. Foreign investments rose 17% to about $2.4 billion during the period.
In Q3 2026, institutional investments stood at approximately $1.42 billion, up 12% from $1.27 billion in Q3 2025, but down 51% sequentially. Domestic investors accounted for around $0.9 billion, or nearly two-thirds of quarterly inflows.
Badal Yagnik, chief executive officer and managing director of the company said residential and office assets together accounted for 46% of domestic capital allocation during the quarter.
Office assets attract $2.2 billion
Office real estate attracted about $2.2 billion during the first nine months of 2026, up 46% year-on-year, and accounted for 37% of total institutional investment. Domestic investors contributed more than 90% of capital deployed in office assets during the period.
Mixed-use and alternative assets followed, each accounting for about 16-17% of overall investments.
Alternative assets attracted more than $0.9 billion, while hospitality received over $0.6 billion during January-September. Investments in both categories increased around six-seven times compared with the corresponding period of 2025.
Foreign capital accounted for nearly three-fourths of alternative asset investments and almost all hospitality investments during the period.
Hospitality was the largest asset class in Q3, attracting around $0.4 billion, or approximately 25% of quarterly inflows. Office, residential and industrial and warehousing assets each attracted around $0.2-0.3 billion.
Multi-city deals account for half of investments
Multi-city transactions attracted approximately $2.94 billion during January-September 2026, up 125% year-on-year, and accounted for around 50% of total investment volumes.
Bengaluru attracted $643.4 million, up 21% year-on-year, while Chennai received $639.4 million, up 91%. Delhi-NCR recorded investments of $581.7 million, an increase of 178% from the corresponding period last year.
Mumbai attracted $518.9 million, down 36% year-on-year, while Pune received $492.4 million, up 66%. Hyderabad and Kolkata recorded sharp declines, with investments falling 82% and 90%, respectively.
Q3 led by hospitality transaction
Among the larger transactions during Q3 2026, Canada Pension Plan Investment Board invested $312 million in Prestige Hospitality Ventures, while Brookfield India Real Estate Trust and Prime Offices Fund deployed about $178.2 million in an office transaction in Mumbai.
Kotak Realty Fund invested around $83.7 million in Smartworld Developers in Delhi-NCR. ASK Property Fund invested $31.8 million in BRV Group and KW Group, while Certus Capital deployed about $28.5 million in 4S Developers, both in Delhi-NCR residential projects.
