Multi-City Deals Dominate India's Real Estate Investments in Q2 2026: Vestian
Multi-city deals contributed 60.3% of institutional investments during the quarter, reflecting investors' preference for diversified portfolios across multiple markets. Among individual cities, Chennai emerged as the top destination, attracting 16.3% of total investments, followed by Bengaluru with an 11.3% share.
The National Capital Region (NCR) accounted for 3.1% of investments, while Hyderabad attracted 3%, Mumbai 2.3%, Pune 2% and Kolkata 1.4%. Goa accounted for the remaining 0.2%.
Vestian said the trend highlights growing investor confidence in geographically diversified real estate portfolios and the expanding investment opportunities across India's major metropolitan markets despite ongoing global economic uncertainties.
Robust Investments Amid Geopolitical Challenges
Institutional investments in India's real estate sector surged to USD 2.7 Bn in Q2 2026, registering a two-fold increase over the previous quarter and 49% rise compared to the same period last year. This strong growth underscores continued investor confidence in the sector despite prevailing geopolitical and economic challenges. Moreover, cumulative investments reached USD 4.1 Bn in H1 2026, the highest first-half inflow recorded since the COVID-19 pandemic. Going forward, a gradual improvement in global economic and geopolitical conditions is expected to bolster foreign investor participation, while domestic investors are likely to further intensify capital deployment across asset classes.
Office Assets Led Investments on the back of Heightened Demand from GCCs
Commercial assets continued to dominate institutional investments in Q2 2026, accounting for 70% of the total inflows. Supported by robust occupier demand from Global Capability Centers (GCCs), the segment attracted approximately USD 1.9 Bn in investments, registering 67% quarterly and 72% yearly rise.
Investments in residential assets nearly doubled over the previous quarter, attracting USD 0.4 Bn. Despite the strong sequential rise in investment value, the share remained largely stable at 15%.
Diversified assets emerged as the fastest-growing category, with investment inflows surging 566% quarter-on-quarter to USD 0.37 Bn, primarily driven by a low base effect. In contrast, investment activity in the industrial and warehousing segment remained relatively subdued, attracting USD 0.03 Bn during the quarter.
Participation of Foreign Investors Increased as Global Uncertainty Subsided
Domestic investors accounted for the largest share of institutional investments in Q2 2026 at 58%, although their contribution declined from 72% in the previous quarter. In value terms, domestic investments reached USD 1.5 Bn, registering annual and quarterly growth of 363% and 53%, respectively.
Foreign investors contributed 38% to the total investments during the quarter, with inflows surpassing USD 1 Bn following a 454% quarter-on-quarter increase. Meanwhile, the share of co-investments declined to 4%, indicating a growing preference for independent capital deployment.
Shrinivas Rao, FRICS, CEO, Vestian said, “India’s real estate sector attracted significant institutional investments during the second quarter of 2026, mainly driven by robust domestic capital deployment and a revival in foreign investor participation. While commercial assets continue to attract the lion’s share of investments on the back of sustained GCC expansion, increased diversification across asset classes reflects growing investor confidence in the broader real estate ecosystem. As geopolitical and economic uncertainties gradually ease further, investment activity is expected to remain buoyant, reinforcing India’s position as a preferred global real estate investment destination.”
Published on:
09 July 2026
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