News: Institutional Realty Investment Up 74% to $1.41 Bn-01-04-2026
Institutional investment in Indian real estate rose 74% year-on-year to $1.41 billion in Q1 2026, from $0.81 bn in Q1 2025, a Vestian report said. Compared with the $3.73 billion of Q4 2025, however, inflows were down 62%, which the firm put down mainly to a high base.
Through 2025, inflows went from $0.81 billion in Q1 to $1.80 billion in Q2, a 122% increase, eased to $1.76 billion in Q3 and then jumped in Q4. Despite the sequential fall, Q1 2026 was the strongest first quarter since 2022, which the report said reflected investor confidence amid intensifying global headwinds.
Foreign investors’ share dropped to 13% from over 40% a year earlier as geopolitical frictions escalated. Co-investments fell to 15% from 37% in the previous quarter. Domestic investors filled the gap, with their share rising to 72% from 22% in Q4 2025. Domestic inflows exceeded $1 billion, up 118% YoY and 25% QoQ.
Shrinivas Rao, FRICS, CEO, Vestian, said domestic capital was sustaining momentum as foreign participation moderated, while GCC-led demand continued to support confidence in commercial assets.
The report said Global Capability Centres (GCCs) expanding in India kept up demand for high-quality office assets. Residential inflows fell 53% QoQ and 59% YoY to around $0.2 billion, though the segment’s share rose to 15% from 12%. Industrial and warehousing attracted just $22 million, its share shrinking from 17% in Q4 2025 to 1%. Diversified assets received $55.8 million.
