Capital inflows into India’s real estate sector rose ~72% year-on-year (Y-o-Y) to $5.1 billion in the January-March quarter (Q1 2026) this year, as compared to $2.9 billion recorded in Q1 2025. These inflows, the highest in any quarter, were led primarily by developers, followed closely by Real Estate Investment Trusts (REITs). Bengaluru, Mumbai, and Delhi-NCR cumulatively accounted for around 65% of the total investment share, a report has said.
According to the report, the period also witnessed a significant ~53% quarter-on-quarter (Q-o-Q) investment surge from $3.3 billion in Q4 2025, reflecting sustained institutional investor confidence in the fundamentals of the country’s real estate sector.
Bengaluru, Mumbai, and Delhi-NCR accounted for around 65% of total investment
The report also noted that Bengaluru, Mumbai, and Delhi-NCR accounted for around 65% of total investment. Notably, capital from Singapore and Canada comprised ~72% and ~27%, respectively, of total foreign inflows.
The underlying strength of the residential sector was further underscored by the establishment of new investment and development platforms worth approximately $234 million during the quarter, supplementing the primary capital infusions of $5.1 billion, the report said.
During Q1 2026, investment momentum was led by substantial inflows into built-up office assets and continued activity in land / development site acquisitions, which together accounted for more than 90% of overall equity investment flows. Domestic investors, led primarily by developers, dominated the investment landscape, accounting for ~96% of overall inflows, it said.
Significant capital directed towards land acquisitions
The report also outlined that a significant portion of this capital was directed towards land acquisitions. Over 73% of the funds dedicated to site acquisitions were deployed to mixed-use and residential projects, with the remaining funds committed to office, warehousing, and hospitality developments, the report showed.
“This underscores the high confidence of domestic investors and institutional players in the Indian real estate growth story,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.
“Despite global macroeconomic headwinds, our resilient economic framework continues to attract deep capital. The multi-fold increase in REIT activity is particularly encouraging, signalling a maturing market that is increasingly shifting towards institutionalised, yield-generating assets. Going forward, we anticipate foreign capital to re-engage strongly, driven by clearer deployment strategies,” he said.
