Indian real estate attracts $1.6 billion in Q1 2026, domestic investors drive 75% of capital inflows: Colliers

Indian real estate continued to draw strong institutional interest in Q1 2026, with total capital inflows rising 25% year-on-year (YoY) to USD 1.64 billion, according to Colliers India. Domestic investors led the surge, contributing USD 1.2 billion — a 57% YoY jump — and accounting for three-fourths of overall quarterly investments.

“Domestic investors are driving the market, supported by strong office and residential fundamentals, while global capital is selectively targeting alternative and hospitality assets,” said Badal Yagnik, CEO & MD, Colliers India. He added that India’s consumption-driven economy, favourable demographics, and investor appetite are likely to sustain institutional inflows, keeping the market resilient amid global uncertainties.

Delhi NCR and Bengaluru lead city-Level investments

At the city level, Delhi NCR attracted USD 0.4 billion, accounting for over one-fourth of total quarterly investments, followed by Bengaluru with USD 0.3 billion. Together, these two cities contributed 46% of Q1 inflows, primarily led by large office transactions in operational assets.

Multi-city investments, totaling close to USD 0.5 billion, represented almost one-third of quarterly inflows. Hospitality and residential assets collectively accounted for nearly two-thirds of these multi-city investments, reflecting growing investor appetite for opportunities beyond Tier I cities and across multiple asset classes.

Office and residential assets dominate, alternatives gain traction

Office assets remained the dominant segment in Q1 2026, drawing USD 0.82 billion — roughly half of total inflows — and almost double the levels of Q1 2025. Domestic investors contributed over 90% of office-segment inflows, with allocations more than tripling year-on-year, reflecting strong conviction in high-quality, ready-to-occupy office assets supported by diversified tenant profiles, stable cash flows, and improved long-term visibility.

Residential investments followed with USD 0.32 billion inflows, registering 7% YoY growth and accounting for 20% of total quarterly capital. Meanwhile, hospitality, alternative, and retail assets collectively recorded USD 0.35 billion, over 20% of total inflows, largely fueled by foreign investors.

“While office and residential segments continue to remain the front runners of real estate capital deployment in India, other asset classes such as hospitality, alternatives, and retail witnessed a remarkable surge in capital inflows, collectively accounting for over 20% of the total investment volumes during Q1 2026, stated said Vimal Nadar, National Director & Head of Research, Colliers India.

According to him, out of the USD 0.35 billion cumulative investments across these three asset classes, foreign capital accounted for a notable 70% share. "This reflects diversification of global capital, particularly into alternative assets driven by superior risk-return profiles and long-term demand traction,” he noted.