Key Takeaways
- • Institutional investment in India's real estate sector reached $2.1 billion in Q3 2026, up 12% quarter-on-quarter and 20% year-on-year, according to Cushman & Wakefield.
- • Foreign investors regained the lead after four consecutive quarters of domestic dominance, deploying $1.4 billion, or 68% of total quarterly inflows.
- • Domestic institutions contributed $0.7 billion (32%), with domestic deployment falling 34% q-o-q and 39% y-o-y against a high prior-period base.
- • Data centres captured 52% of institutional investment in the quarter, while hospitality took 15% and office 9%.
- • Year-to-date institutional investment totalled $5.5 billion, up 11% y-o-y, with domestic investors at 52% and foreign investors at 48%.
Summary
Institutional investment in India's real estate sector reached $2.1 billion during the third quarter of 2026, a 12% increase quarter-on-quarter and a 20% rise year-on-year, according to a report by Cushman & Wakefield. The firm's data shows foreign investors regaining the lead after four consecutive quarters of domestic dominance. Foreign capital deployed $1.4 billion, accounting for 68% of total inflows. Foreign inflows rose 64% q-o-q and 134% y-o-y, which the report attributes to renewed global interest.
Domestic institutions contributed the remaining $0.7 billion, or 32% of quarterly deployment. Domestic investment contracted 34% on a quarterly basis and 39% on an annual basis, which Cushman & Wakefield attributes primarily to a high base of domestic deployment in comparable prior periods.
On a year-to-date basis, institutional investment totalled $5.5 billion, an 11% increase year-on-year. Domestic investors accounted for 52% of year-to-date volumes after 15% annual growth, while foreign investors represented 48% following an 8% rise.
Asset allocation shifted noticeably toward digital infrastructure. Data centres ranked first among asset classes with 52% of institutional investment, followed by hospitality at 15% and office at 9%. By route, private equity funds drove 88% of activity, with REITs contributing 12%. Multi-city transactions accounted for 76% of quarterly activity, while Mumbai and Delhi-NCR secured 9% and 6% of direct allocations, respectively.
Somy Thomas, Executive Managing Director, Capital Markets at Cushman & Wakefield, said the sector has shown resilience amid broader macro headwinds. "While investors remain selective in their deployment strategies, capital continues to gravitate towards opportunities backed by scale and long-term growth potential," he said. Thomas added that the higher foreign share reflects the attractiveness of India's real estate sector, and that growing data centre allocation "underscor[es] investors' growing conviction in India's digital infrastructure growth story."
Domestic institutions contributed the remaining $0.7 billion, or 32% of quarterly deployment. Domestic investment contracted 34% on a quarterly basis and 39% on an annual basis, which Cushman & Wakefield attributes primarily to a high base of domestic deployment in comparable prior periods.
On a year-to-date basis, institutional investment totalled $5.5 billion, an 11% increase year-on-year. Domestic investors accounted for 52% of year-to-date volumes after 15% annual growth, while foreign investors represented 48% following an 8% rise.
Asset allocation shifted noticeably toward digital infrastructure. Data centres ranked first among asset classes with 52% of institutional investment, followed by hospitality at 15% and office at 9%. By route, private equity funds drove 88% of activity, with REITs contributing 12%. Multi-city transactions accounted for 76% of quarterly activity, while Mumbai and Delhi-NCR secured 9% and 6% of direct allocations, respectively.
Somy Thomas, Executive Managing Director, Capital Markets at Cushman & Wakefield, said the sector has shown resilience amid broader macro headwinds. "While investors remain selective in their deployment strategies, capital continues to gravitate towards opportunities backed by scale and long-term growth potential," he said. Thomas added that the higher foreign share reflects the attractiveness of India's real estate sector, and that growing data centre allocation "underscor[es] investors' growing conviction in India's digital infrastructure growth story."
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