Key Takeaways
- • Foreign investors deployed $1.4 billion, or 68% of institutional real estate investment, in India in the July-September 2026 quarter, reclaiming the lead after four consecutive quarters of domestic-led activity, according to Cushman & Wakefield.
- • Total institutional real estate investment in India reached $2.1 billion in Q3 2026, up 20% year-on-year and 12% quarter-on-quarter.
- • Data centres attracted 52% of Q3 institutional capital, up from second place in the prior quarter, driven by AI workloads, cloud computing and data localisation demand.
- • Year-to-date institutional investment totalled $5.5 billion through September 2026, up 11% year-on-year, with domestic investors holding a 52% share.
- • Private equity accounted for 88% of Q3 deployment, with REITs making up the remaining 12%, and multi-city deals representing 76% of activity.
Summary
Foreign investors regained their position as the largest contributors to institutional real estate investment in India in the July-September quarter of 2026, ending four consecutive quarters in which domestic investors led capital deployment. According to Cushman & Wakefield's Capital MarketBeat report, institutional real estate investment rose 20% year-on-year and 12% quarter-on-quarter to $2.1 billion in Q3 2026. Foreign investors deployed $1.4 billion, representing 68% of the quarter's total, while domestic institutions contributed $700 million, or 32%. Foreign investment rose 64% from the previous quarter and 134% from a year earlier, whereas domestic investment fell 34% quarter-on-quarter and 39% year-on-year.
On a year-to-date basis, institutional investment reached $5.5 billion in the first nine months of 2026, up 11% from the same period last year. Domestic investors accounted for 52% of year-to-date deployment, while foreign investors contributed 48%. Domestic capital grew 15% year-on-year over the period, compared with 8% growth in foreign investment.
Data centres emerged as the largest recipient of institutional capital in Q3, attracting 52% of total investment, up from second place in the previous quarter. Cushman & Wakefield attributed the interest to demand for digital infrastructure, including facilities for artificial intelligence workloads, cloud computing and data localisation. Hospitality accounted for 15% of quarterly investment and office assets for 9%. Somy Thomas, executive managing director, capital markets at Cushman & Wakefield, said investors remain selective and that capital continues to favour opportunities backed by scale and long-term growth potential.
By geography and structure, multi-city transactions made up 76% of activity, indicating a preference for diversified portfolios. Mumbai attracted 9% of quarterly investment and Delhi-NCR 6%. Private equity investors dominated with 88% of Q3 activity, while REIT-led investments accounted for 12%. Cushman & Wakefield expects both private equity funds and REITs to continue expanding their portfolios through strategic investments.
On a year-to-date basis, institutional investment reached $5.5 billion in the first nine months of 2026, up 11% from the same period last year. Domestic investors accounted for 52% of year-to-date deployment, while foreign investors contributed 48%. Domestic capital grew 15% year-on-year over the period, compared with 8% growth in foreign investment.
Data centres emerged as the largest recipient of institutional capital in Q3, attracting 52% of total investment, up from second place in the previous quarter. Cushman & Wakefield attributed the interest to demand for digital infrastructure, including facilities for artificial intelligence workloads, cloud computing and data localisation. Hospitality accounted for 15% of quarterly investment and office assets for 9%. Somy Thomas, executive managing director, capital markets at Cushman & Wakefield, said investors remain selective and that capital continues to favour opportunities backed by scale and long-term growth potential.
By geography and structure, multi-city transactions made up 76% of activity, indicating a preference for diversified portfolios. Mumbai attracted 9% of quarterly investment and Delhi-NCR 6%. Private equity investors dominated with 88% of Q3 activity, while REIT-led investments accounted for 12%. Cushman & Wakefield expects both private equity funds and REITs to continue expanding their portfolios through strategic investments.
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