image sourced from original article at Institutional investments in India's real estate sector reached $1.6 billion in the January to March 2026 quarter, marking a 26 per cent rise compared to the same period last year. However, inflows declined sharply by 52 per cent from the previous quarter, largely due to the impact of the Middle East conflict and global uncertainties.
Domestic investors played a dominant role, contributing $1.21 billion during the quarter, significantly higher than a year earlier. In contrast, foreign investments fell both year-on-year and quarter-on-quarter, reflecting sensitivity to global macroeconomic and geopolitical conditions. Consultants noted that domestic capital has accounted for a larger share of investments in four of the past five quarters, helping stabilize the market.
Office assets remained a key focus for domestic investors, supported by steady performance of real estate investment trusts and relatively muted returns in equity markets. Among cities, the Delhi region attracted the highest share of investments, followed by Chennai and Bengaluru, with industry leaders highlighting Bengaluru’s strong fundamentals and long-term appeal.
