India’s real estate sector saw a record surge in capital inflows in the first quarter of 2026, with investments rising 72% year-on-year to $5.1 billion, according to CBRE’s latest market monitor report. This is the highest quarterly inflow ever recorded.
These inflows, the highest in any quarter ever, were primarily led by developers, closely followed by Real Estate Investment Trusts (REITs).
According to the report, the period also witnessed a significant 53% quarter-on-quarter (Q-o-Q) investment surge from $3.3 billion in Q4 2025, reflecting a sustained institutional investor confidence in the fundamentals of the country’s real estate sector.
“This underscores the high confidence of domestic investors and institutional players in the Indian real estate growth story,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “Despite global macroeconomic headwinds, our resilient economic framework continues to attract deep capital. The multi-fold increase in REIT activity is particularly encouraging, signaling a maturing market that is increasingly shifting towards institutionalised, yield-generating assets. Going forward, we anticipate foreign capital to re-engage strongly, driven by clearer deployment strategies.”
During Q1 2026, the investment momentum was mainly led by substantial inflows into built-up office assets and continued activity in land / development site acquisitions, which together commanded more than 90% of the overall equity investment flows.
Domestic investors, led primarily by developers, dominated the investment landscape with a 96% share of the overall inflows.
Developers constituted 42% of the total capital inflows, closely followed by REITs at 40%. Notably, investments by REITs surpassed $2 billion, reflecting a multi-fold increase from the previous quarter and representing a substantial share of the total investment pie.
The report also outlined that a significant portion of this capital was directed towards land acquisitions. Over 73% of the funds dedicated to site acquisitions were deployed for mixed-use and residential projects, with the rest committed to office, warehousing, and hospitality developments.
Bengaluru, Mumbai, and Delhi-NCR cumulatively accounted for around 65% of the total investment share. Notably, capital from Singapore and Canada comprised ~72% and ~27%, respectively, of total foreign inflows.
The underlying strength of the residential sector was further underscored by the establishment of new investment and development platforms worth approximately $234 million during the quarter, supplementing the primary capital infusions of $5.1 billion.
“We are observing a sustained preference for high-quality office space, underpinned by significant inflows from domestic institutional capital, as well as foreign capital, most notably via REITs. This demand, coupled with increased site acquisitions for mixed-use & residential development, underscores a resilient market outlook. Looking ahead, we expect the next phase of investment to be defined by a strategic balance of yield-focused income assets and high-growth opportunistic plays,” said Gaurav Kumar, Managing Director & Co-Head, Capital Markets, India, CBRE.
Key highlights:
Domestic capital leads, REITs gain ground
The investment activity in Q1 2026 was largely driven by domestic investors, who accounted for 96% of total inflows.
Developers led the market with a 42% share
REITs followed closely at 40%, with investments crossing $2 billion
Top cities capture majority share
Investment activity remained concentrated in major urban centres.
Bengaluru, Mumbai, and Delhi-NCR together accounted for around 65% of total investments
Foreign capital remains selective but active
Singapore accounted for 72% of foreign inflows
Canada contributed 27%
Residential sector gains momentum
The residential segment also showed underlying strength, with:
New investment and development platforms worth $234 million launched during the quarter
Office assets and land deals dominate
Investment flows were heavily concentrated in:
Built-up office assets
Land and development site acquisitions
Together, these segments accounted for over 90% of total equity investments in the quarter.
A large portion of capital was also directed toward land acquisitions, with:
Over 73% of site investments going into Mixed-use developments