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India’s real estate sector recorded investments of USD 5.1 billion in the January–March quarter of 2026, marking a 72 per cent year-on-year increase and the highest quarterly inflow to date, according to data from CBRE Group. Domestic capital accounted for approximately 96 per cent of total investments, with developers and real estate investment trusts (REITs) emerging as the primary contributors. Key urban centres including Bengaluru, Mumbai and Delhi NCR attracted nearly 65 per cent of the inflows. Investment activity spanned residential, office and emerging asset classes such as data centres and logistics, reflecting a shift towards institutional-grade, income-generating assets. The trend underscores sustained investor confidence supported by stable demand, improving transparency and continued formalisation of the sector.
India’s real estate sector attracted USD 5.1 billion in investments during the first quarter of 2026, registering a 72 per cent increase compared to the same period last year and a 53 per cent rise over the previous quarter, according to data released by CBRE Group. The inflow, recorded in the January–March period, represents the highest quarterly investment in the sector to date, driven largely by domestic capital and continued demand across key asset classes.
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Domestic investors accounted for approximately 96 per cent of total inflows during the quarter, indicating a deepening local investment base. Within this, developers contributed around 42 per cent of the total investment, while real estate investment trusts (REITs) accounted for close to 40 per cent. Investments routed through REITs alone exceeded USD 2 billion, reflecting a growing preference for structured, income-generating assets.
Investment activity remained concentrated in established urban markets, with Bengaluru, Mumbai and Delhi NCR together accounting for nearly 65 per cent of total inflows. These cities continue to attract capital due to their established commercial ecosystems, infrastructure connectivity and sustained absorption levels across both residential and office segments.
The inflows were spread across residential and office developments, alongside emerging asset classes such as data centres and logistics. This diversification indicates a broadening investment base and reduced dependence on traditional segments, as institutional investors increasingly seek stable, yield-oriented opportunities.
Industry participants indicated that the rise in capital deployment has been supported by stable macroeconomic conditions, steady demand and increasing formalisation within the real estate sector. Parvinder Singh, chief executive officer of Trident Realty, said that the rapid increase in investments reflects India’s emergence as a scalable and credible market, driven not only by liquidity but also by structural factors such as urbanisation and industry formalisation. He added that aligning capital inflows with sustainable development, infrastructure readiness and buyer affordability would be essential to maintaining long-term investor confidence.
Deepak Sangwan, chairman of Origen Realty, stated that the growth in capital inflows reflects renewed confidence in the sector, supported by stable economic fundamentals and demand across asset classes. He noted that the increasing share of domestic capital signals a more mature investment landscape, while capital deployment is becoming more selective, with a focus on quality assets, execution capability and demand visibility. According to him, this shift is contributing to a more structured and disciplined growth cycle.
Robin Mangla, president of M3M India, said that sustained inflows despite global macroeconomic uncertainty highlight strong institutional confidence in the Indian market. He observed that the rising share of REIT-led investments reflects a transition towards long-term investment strategies rather than speculative activity. He added that the continuation of this momentum will depend on the sector’s ability to convert capital into quality supply, while cautioning that capital allocation must remain calibrated to avoid valuation pressures in premium markets.
Market observers indicated that while the investment outlook remains positive, future momentum will depend on execution quality, supply discipline and policy consistency, with capital expected to favour markets and segments demonstrating resilience and long-term value.
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