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• India's real estate sector attracted USD 2.9 billion in institutional investments during the second quarter of CY2026, according to a recent report.
• Chennai and Bengaluru together accounted for nearly 27% of the total investment inflows, driven by strong demand for commercial and industrial assets.
• Domestic capital continued to gain momentum alongside sustained foreign investor participation.
• The report indicates that resilient office leasing, expanding logistics infrastructure and data centre investments are supporting continued investor confidence across major property markets.
Institutional investors continued to show confidence in India's real estate market during the second quarter of CY2026, with investments touching USD 2.9 billion despite global economic uncertainties. The latest market report points to sustained interest across commercial offices, industrial and warehousing assets, residential developments and emerging sectors such as data centres. Chennai and Bengaluru emerged as the biggest beneficiaries of capital deployment, reflecting the growing importance of southern India in the country's real estate investment landscape.
India's real estate market recorded institutional investments of approximately USD 2.9 billion during the April-June quarter of CY2026, taking total inflows for the first half of the calendar year to nearly USD 4.5 billion. The steady investment activity highlights continued confidence in the country's long-term property fundamentals, supported by economic growth, urbanisation and expanding infrastructure.
According to the report, Chennai and Bengaluru together attracted around 27% of the total investments during the quarter. Both cities continued to benefit from strong occupier demand across office, industrial and technology-led developments, making them preferred destinations for institutional capital. Their established corporate ecosystems, improving infrastructure and growing data centre footprint further strengthened investor interest.
Commercial office assets remained one of the largest recipients of institutional funding, supported by resilient leasing activity from technology firms, global capability centres (GCCs) and multinational companies. Industrial and warehousing projects also continued to draw investments as India's manufacturing push, expanding logistics network and e-commerce growth sustained demand for high-quality logistics infrastructure.
The report noted that domestic investors continued to increase their participation alongside foreign institutional capital, reflecting growing maturity in India's real estate investment ecosystem. While global funds remained active, Indian investors accounted for a larger share of transactions compared with previous years, contributing to a more diversified investment landscape.
Alternative real estate segments such as data centres, life sciences facilities and mixed-use developments also continued to attract investor attention. The increasing digitalisation of businesses, rising cloud adoption and sustained demand for digital infrastructure have expanded the range of investment opportunities beyond traditional office and residential assets.
Market experts believe India's relatively strong economic outlook, policy reforms, infrastructure spending and healthy occupier demand continue to position the country as an attractive destination for long-term real estate investment. While global macroeconomic conditions remain uncertain, the sector's diversified growth drivers and improving institutional participation are expected to support investment momentum in the coming quarters.
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