India's Real Estate Sector Sees Record-Breaking Capital Inflows in Q1 2026
According to a recent report by CBRE South Asia Pvt. Ltd., India's real estate sector has seen a record-breaking capital inflow of USD 5.1 billion in the January-March quarter of 2026, marking a 72 per cent year-on-year increase.
- Notable Increase:** Record-high capital inflows in the January-March quarter of 2026.
- 72 per cent year-on-year increase in capital inflows.
- 53 per cent quarter-on-quarter (Q-o-Q) investment surge from USD 3.3 billion in Q4 2025.
The report highlights a sustained institutional investor confidence in the fundamentals of India's real estate sector, with domestic investors and Real Estate Investment Trusts (REITs) leading the charge.
"This underscores the high confidence of domestic investors and institutional players in the Indian real estate growth story," said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.
Key Findings:
- Investment Momentum:** Substantial inflows into built-up office assets and continued activity in land / development site acquisitions.
- Developers dominated the investment landscape with a 96 per cent share of the overall inflows.
- REITs invested over USD 2.0 billion, reflecting a multi-fold increase from the previous quarter.
A significant portion of the capital was directed towards land acquisitions, with over 73% of the funds dedicated to site acquisitions being deployed for mixed-use and residential projects.
"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," said Gaurav Kumar, Managing Director and Co-Head, Capital Markets, India, CBRE.
Regional Breakdown:
- Bengaluru, Mumbai, and Delhi-NCR cumulatively accounted for around 65% of the total investment share.
- Capital from Singapore and Canada comprised Rs 72% and Rs 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 USD 234 million during the quarter.