Domestic investors remained the dominant source of capital during the nine-month period, contributing USD 3.5 billion and accounting close to 60% of the total investments during the period. A strong 59% YoY increase in domestic capital inflows highlights the depth and maturity of core real estate asset classes in India. At the same time, foreign investments also recorded a notable growth during the first three quarters of 2026, rising 17% YoY to about USD 2.4 billion. A significant share of foreign capital was directed towards developmental assets, driven by investors’ ongoing pursuit of long-term value creation in alternative, hospitality and mixed-use projects.
During Q3 2026, institutional capital inflows stood at USD 1.4 billion, a 12% YoY increase, albeit witnessing a 51% drop on a sequential basis.
“The strengthening of domestic capital is perhaps the most defining theme of institutional investments in Indian real estate. In Q3 2026, domestic investors drove about USD 0.9 billion inflows, accounting for nearly two-thirds of the total investments. Local investors continue to prefer core assets, with residential & office segments collectively accounting for 46% of the domestic capital allocation during the quarter. While residential investments were largely directed towards developmental projects, office investments were primarily focused on operational assets. Looking ahead, with evolving preferences across the risk-return spectrum, growing depth in domestic capital is expected to drive real estate investments in India, along with an uptick in foreign investment volumes in upcoming quarters,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.
Office segment dominates with 37% share; hospitality & alternative assets see multi-fold growth
During the first three quarters of 2026, office segment attracted USD 2.2 billion in capital inflows, witnessing a 46% YoY rise. Domestic investors played a pivotal role, contributing more than 90% of the institutional inflows in the segment during the same period. Sustained leasing momentum across high-quality Grade A office assets and long-term demand prospects continue to reinforce the segment’s attractiveness amongst investors. While office assets remained the major driver of real estate investments, accounting for 37% share during the nine-month period, mixed-use & alternative assets followed, with each of them corresponding to a share of 16-17%.
Interestingly, alternative & hospitality segments have been one of the best performing segments in 2026 so far. During the nine-month period, alternative & hospitality assets garnered over USD 0.9 billion & USD 0.6 billion investments respectively, individually rising 6-7X times compared to the corresponding period of 2025. Strong foreign investor interest underpinned both segments, with overseas capital accounting for nearly three-fourths of alternative asset investments and almost the entirety of hospitality inflows during the period.
“Investor participation remained broad-based across real asset classes, albeit slightly more skewed on account of a marquee transaction in hospitality segment. All three core segments - office, residential and industrial & warehousing witnessed around USD 0.2-0.3 billion inflows each during Q3 2026. These three segments collectively accounted for nearly half of the quarterly investments led by domestic investors. Most importantly, buoyed by strong capital allocation across real estate segments, the first nine months of 2026 have already seen institutional investments to the tune of USD 5.9 billion, a 9-month high in recent years. This reiterates the confidence of investors in Indian real estate, even in the wake of growth moderation elsewhere,” said Vimal Nadar, National Director & Head of Research, Colliers India.
Bengaluru, Chennai & Delhi NCR collectively account for nearly one-third of the inflows; multi-city deals see more than 2X rise YoY
At around USD 0.6 billion inflows each, Bengaluru, Chennai & Delhi NCR dominated investment volumes, cumulatively accounting for nearly one-third share during the first nine months of 2026. Office assets drove majority of the investment inflows in these three cities during the same period. In fact, Delhi NCR witnessed close to three-fold rise in investment inflows during the nine-month period, reiterating sustained investor confidence in income-generating & operational Grade A assets.
At the same time, investor preference for diversified, multi-location portfolios remained noteworthy and surged over 2X times YoY during the first nine months of 2026. Multi-city deals attracted USD 2.9 billion inflows and contributed about half of the investment volumes during the same period.
