Real estate capital inflows in India jump 72% to record $5.1 billion in Q1 2026: CBRE

Capital inflows into India’s real estate sector surged 72% year-on-year to a record $5.1 billion in the January-March quarter of 2026, compared with $2.9 billion in the corresponding period last year, according to CBRE South Asia’s latest India Market Monitor Q1 2026 – Investments report. 

The inflows marked the highest quarterly investment ever recorded in India’s real estate market, led primarily by developers and closely followed by Real Estate Investment Trusts (REITs). 

The sector also posted a sharp 53% quarter-on-quarter increase from $3.3 billion in Q4 2025, indicating sustained confidence among institutional investors in the country’s property market fundamentals. 

Domestic investors lead surge 

“India’s record investment inflows underscore the strong confidence of domestic investors and institutional players in the country’s real estate growth story,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, while adding that despite global macroeconomic challenges, India’s resilient economic framework continues to attract deep pools of capital. The sharp rise in REIT activity also reflects a maturing market increasingly focused on institutionalised, yield-generating assets, he said. 

During the quarter, investment momentum was driven largely by built-up office assets and land/development site acquisitions, which together accounted for more than 90% of total equity inflows. 

Domestic investors, led mainly by developers, dominated the market with a 96% share of total inflows. Developers accounted for 42% of capital inflows, while REITs contributed nearly 40%. 

Investments by REITs crossed $2 billion, registering a multi-fold jump from the previous quarter and forming a significant share of total investments. 

Strong demand for land, housing projects 

The report said a substantial portion of capital was directed toward land acquisitions. More than 73% of funds allocated for site purchases were invested in mixed-use and residential projects, while the remainder went into office, warehousing and hospitality developments. 

Gaurav Kumar, Managing Director and Co-Head, Capital Markets, India, CBRE, said investors continue to prefer high-quality office assets, backed by strong domestic institutional participation and foreign capital, particularly through REITs. 

He said that rising site acquisitions for mixed-use and residential developments highlight a resilient market outlook. Going forward, investment activity is expected to balance income-generating assets with higher-growth opportunities. 

Bengaluru, Mumbai and Delhi-NCR together accounted for around 65% of total investment activity during the quarter.  

Among foreign investors, Singapore contributed nearly 72% of overseas inflows while Canada accounted for around 27%. 

The residential sector also remained strong, supported by the launch of new investment and development platforms worth about $234 million during the quarter, in addition to the primary capital inflows of $5.1 billion.