Q1 FY26 Real Estate Investment Trends in India
Domestic Investors Drive Market Share
- Domestic investors maintained a 76% market share in Q1 FY26, while foreign investors contributed 24%.
- This marks the fourth quarter in the last five quarters where domestic investors have held a higher share.
According to a report by Cushman & Wakefield, the increased domestic institutional share acts as a safeguard against volatile foreign capital flows, reducing risks from global currency fluctuations and geopolitical events.
Q1 FY26 Investment Activity Overview
- Total institutional investment activity in real estate during Q1 FY26 recorded a total of USD 1.6 billion.
- However, this represents a 52% quarter-on-quarter (QoQ) decline, but a 26% year-on-year (YoY) increase.
Investment Breakdown by Property Type
- Core asset acquisitions accounted for 68% of Q1 FY26 investments.
- Under construction projects contributed 24%, while early-stage investments made up 8%.
Most Attractive Sectors in Q1 FY26
- The office sector received 64% of total investments in Q1 FY26.
- The hospitality sector accounted for 13%, while residential sector investments made up 9%.
City Level Investment Trends
- Delhi NCR garnered 28% of the quarterly investment in Q1 FY26.
- Chennai and Bangalore followed closely with 17% and 14% shares, respectively.
Private Equity (PE) and REIT Investments
- Private Equity (PE) investments had a 74% share in Q1 FY26.
- Real Estate Investment Trusts (REITs) accounted for 26% of total investments.
Private Equity Investment Trends
- Private Equity investments in the real estate sector during Q1 FY26 were up 48% YoY.
- However, they were 19% lower than the previous quarter.
- PE investments from the USA made a strong start to the year, up 5% YoY.
Commercial Office Sector Trends
- Sale transaction volumes in the commercial office sector during Q1 FY26 reached USD 521 million.
- This represents a 17% and 75% increase YoY and QoQ, respectively.
Transaction Highlights
- Mumbai continued to drive transactions with a 48% share in value terms.
- Chennai and Pune followed closely with 23% and 18% shares, respectively.
Outlook for the Remainder of 2026
Strong Domestic Capital Pools, Healthy Office Demand, and Expanding REIT Portfolios Drive Positive Outlook
With these factors in place, India's real estate investment outlook remains positive for the remainder of 2026, according to the report.