NEW DELHI: Institutional investments in Indian real estate stood at $1.4 billion in the January-March quarter of 2026, marking the highest first-quarter inflows since 2022, according to Vestian.
While investments declined 62% quarter-on-quarter due to a high base in the previous quarter, they increased 74% year-on-year, indicating sustained investor interest despite global uncertainties.
Commercial assets dominated investment activity, accounting for about 80% of total inflows at over $1.1 billion, driven by demand from global capability centres (GCCs). However, investments in the segment declined sequentially by 51%.
In contrast, residential investments fell sharply to about $0.2 billion, down 53% quarter-on-quarter and 59% year-on-year. The industrial and warehousing segment saw limited activity, attracting just $22 million during the quarter.
A key trend during the period was the shift in investor composition. Domestic investors accounted for 72% of total inflows, rising from 22% in the previous quarter, with investments exceeding $1 billion. On the other hand, the share of foreign investments declined to 13% from over 40% a year ago.
Shrinivas Rao, CEO of the company said domestic capital played a key role in sustaining investment activity amid global uncertainties, while demand for commercial assets remained supported by occupier expansion.
