Indian Real Estate Attracts $5.9 Billion in Institutional Investments, Up 39% in 2026

Institutional investment in Indian real estate rose to $5.9 billion between January and September 2026, compared with the same period last year, according to The Economic Times news report citing Colliers India.  

The 39% increase took investment to its highest nine-month level in recent years.Domestic investors accounted for $3.5 billion of the total, up 59% year-on-year. Foreign investors contributed around $2.4 billion, registering a 17% increase. 

Office Properties Account for 37% of Investment 

Office properties attracted $2.2 billion during the nine-month period, up 46% from a year earlier. The segment accounted for 37% of total investment, with domestic investors providing more than 90% of the capital. 

Mixed-use and alternative assets each accounted for around 16-17% of investment. Alternative assets received more than $900 million, while hospitality attracted over $600 million.  

Investment in both categories was six to seven times higher than in January-September 2025. Foreign investors contributed nearly three-fourths of alternative asset investment and almost all hospitality investment. 

Quarterly Investment Falls 51% 

Investment in Q3 2026 stood at approximately $1.42 billion, compared with $1.27 billion in Q3 2025. However, it fell 51% from the previous quarter. Domestic investors contributed around $900 million, nearly two-thirds of the quarterly total. 

Hospitality accounted for the largest share of Q3 investment, at around $400 million. Office, residential, and industrial and warehousing assets each attracted between $200 million and $300 million. 

Bengaluru Leads City-Wise Investment 

Transactions spanning multiple cities totalled $2.94 billion, up 125% year-on-year and accounting for half of the overall investment. 

Bengaluru received $643.4 million, followed by Chennai at $639.4 million and Delhi-NCR at $581.7 million. Pune attracted $492.4 million, up 66%, while Mumbai recorded $518.9 million, down 36%. Investment fell 82% in Hyderabad and 90% in Kolkata. 

Major Transactions in Q3 

Canada Pension Plan Investment Board invested $312 million in Prestige Hospitality Ventures. Brookfield India Real Estate Trust and Prime Offices Fund deployed around $178.2 million in a Mumbai office transaction.  

Kotak Realty Fund invested $83.7 million in Smartworld Developers in Delhi-NCR. 

Read More: India Joins US and 13 Economies in Joint Statement on Manufacturing Excess Capacity! 

Conclusion 

Investment during the first nine months reached $5.9 billion, with domestic investors accounting for the largest share. Office assets remained the biggest recipient of institutional capital among individual property categories. 

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