News: Institutional real estate investment in India climbs 16% to $1.9 billion in Q2 2026-21-07-2026
Institutional investment in Indian real estate reached $1.9 billion in the second quarter of 2026, up 16 per cent from the previous quarter, according to Cushman and Wakefield’s Q2 2026 Capital Marketbeat report. Global Capability Centres (GCCs) and data centres drove the increase. On a year-on-year basis, activity eased by seven per cent, but the report said deployment stayed steady on the back of strong domestic participation and a preference for assets that provide stable income.
For the first half of 2026, institutional investments totalled $3.5 billion, six per cent higher than in H1 2025. The report saw this as continued confidence despite global macroeconomic uncertainty.
The office sector remained the largest recipient, drawing nearly $1 billion, or 51 per cent of the total in Q2 2026. It was the fifth straight quarter in which office assets led investment. The report cited strong occupier demand, particularly from GCCs, tighter vacancy, rental growth in premium micro-markets and limited investment-grade supply.
Data centres ranked second with 40 per cent of total investments, reflecting investor interest in digital infrastructure amid rising demand from AI adoption, cloud expansion and data localisation requirements.
Domestic institutions accounted for 54 per cent of Q2 investments, against 46 per cent from foreign investors. In H1 2026, domestic institutions put in $2.2 billion, or 64 per cent of the total, compared with a 43 per cent share in H1 2025. Foreign investors contributed $1.3 billion, or 36 per cent, down from 57 per cent a year earlier.
Somy Thomas, Executive Managing Director, Capital Markets, Cushman and Wakefield, said capital allocation is becoming more differentiated across asset classes, with office drawing a broad set of investors and data centres attracting growing interest. She said investors are also chasing portfolio and multi-city deals, and expects activity to remain resilient through the second half of 2026, anchored by domestic investors.
