Key Takeaways
- • Institutional investment in Indian real estate reached USD 5.9 billion in January-September 2026, up 39% year-on-year, the highest nine-month volume in recent years according to Colliers India.
- • Domestic investors supplied USD 3.5 billion, close to 60% of total inflows and up 59% YoY, while foreign capital rose 17% to about USD 2.4 billion.
- • Office assets led with a 37% share and USD 2.2 billion in inflows (up 46% YoY), while alternative and hospitality assets rose 6-7x from 2025 levels, with overseas capital dominating both.
- • Q3 2026 institutional inflows were USD 1.4 billion, up 12% YoY but down 51% sequentially, with domestic investors providing about USD 0.9 billion.
- • Bengaluru, Chennai and Delhi NCR each drew about USD 0.6 billion and together accounted for nearly one-third of inflows, while multi-city deals reached USD 2.9 billion.
Summary
Institutional investment in Indian real estate reached USD 5.9 billion during the first three quarters of 2026, a 39% year-on-year increase, according to Colliers India. The firm described the figure as the highest nine-month investment volume in recent years, pointing to continued investor confidence despite a weak global economic outlook and cautious capital allocation elsewhere.
Domestic investors remained the dominant source of capital, contributing USD 3.5 billion, or close to 60% of total investment, with domestic inflows up 59% YoY. Foreign investment rose 17% YoY to about USD 2.4 billion, with a significant share directed toward developmental assets in alternative, hospitality and mixed-use projects. In Q3 2026 alone, institutional inflows totaled USD 1.4 billion, up 12% YoY but down 51% from the previous quarter. Domestic investors accounted for roughly USD 0.9 billion of that quarterly total, or nearly two-thirds.
Office assets were the largest segment, attracting USD 2.2 billion (37% share) with a 46% YoY rise, and domestic investors contributed more than 90% of institutional office inflows. Mixed-use and alternative assets followed with shares of 16-17% each. Alternative and hospitality segments were among the best performers, with alternative assets receiving over USD 0.9 billion and hospitality USD 0.6 billion, each up roughly 6-7x from the corresponding 2025 period. Overseas capital accounted for nearly three-quarters of alternative asset investment and almost all hospitality inflows.
Geographically, Bengaluru, Chennai and Delhi NCR each attracted about USD 0.6 billion and together represented nearly one-third of the nine-month total, with office assets driving most of that activity. Delhi NCR's inflows rose close to threefold. Multi-city deals spanning several major cities or Tier II/III locations reached USD 2.9 billion, roughly half of total volume, and more than doubled YoY.
Vimal Nadar, National Director and Head of Research at Colliers India, said investor participation was broad-based across real asset classes, with office, residential and industrial & warehousing each drawing USD 0.2-0.3 billion in Q3 2026. Badal Yagnik, CEO and Managing Director of Colliers India, said growing domestic capital depth is expected to drive activity, with an uptick in foreign investment anticipated in coming quarters.
Domestic investors remained the dominant source of capital, contributing USD 3.5 billion, or close to 60% of total investment, with domestic inflows up 59% YoY. Foreign investment rose 17% YoY to about USD 2.4 billion, with a significant share directed toward developmental assets in alternative, hospitality and mixed-use projects. In Q3 2026 alone, institutional inflows totaled USD 1.4 billion, up 12% YoY but down 51% from the previous quarter. Domestic investors accounted for roughly USD 0.9 billion of that quarterly total, or nearly two-thirds.
Office assets were the largest segment, attracting USD 2.2 billion (37% share) with a 46% YoY rise, and domestic investors contributed more than 90% of institutional office inflows. Mixed-use and alternative assets followed with shares of 16-17% each. Alternative and hospitality segments were among the best performers, with alternative assets receiving over USD 0.9 billion and hospitality USD 0.6 billion, each up roughly 6-7x from the corresponding 2025 period. Overseas capital accounted for nearly three-quarters of alternative asset investment and almost all hospitality inflows.
Geographically, Bengaluru, Chennai and Delhi NCR each attracted about USD 0.6 billion and together represented nearly one-third of the nine-month total, with office assets driving most of that activity. Delhi NCR's inflows rose close to threefold. Multi-city deals spanning several major cities or Tier II/III locations reached USD 2.9 billion, roughly half of total volume, and more than doubled YoY.
Vimal Nadar, National Director and Head of Research at Colliers India, said investor participation was broad-based across real asset classes, with office, residential and industrial & warehousing each drawing USD 0.2-0.3 billion in Q3 2026. Badal Yagnik, CEO and Managing Director of Colliers India, said growing domestic capital depth is expected to drive activity, with an uptick in foreign investment anticipated in coming quarters.
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