·
Capital
flows rose by 25% YoY to touch USD 1.6 billion in Q1 2026
·
Domestic
investments surge 57% YoY at USD 1.2 billion, driving 75% of the institutional
investments in Q1 2026
·
Foreign
investments however moderate to USD 0.4 billion, a 23% YoY dip
·
Office
assets drive half of the quarterly inflows followed by residential assets with
20% share
Gurgaon, 02 April 2026: Indian real estate continues to attract
institutional investors, with inflows rising 25% year-on-year (YoY) to USD 1.6
billion in the first quarter of 2026, fuelled by strong domestic investor
interest. Domestic capital inflows touched USD 1.2 billion during the quarter, witnessing
a strong 57% YoY increase and accounting for three-fourths of the overall investment
volumes. Interestingly, despite the QoQ dip in investment volume, overall
inflows in Q1 2026 stood 64% higher than the average first-quarter volumes
since 2020. This underscores optimism in Indian real estate across asset
classes, amid emerging global headwinds.
Although domestic investments surged significantly,
foreign investor inflows moderated to USD 0.4 billion, reflecting a 23% decline
on an annual basis amidst uncertainties in deployment of global capital. Importantly,
global investors may adopt a more measured, wait-and-watch approach in the
near-term, potentially impacting inflows over the next few quarters. However,
domestic investors are likely to remain firm and offset the potential impact to
an extent.
Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India.
“Institutional investments in
India’s real estate market continue to remain resillient, supported by strong
domestic demand across asset classes. In fact domestic real esate investments
witnessed a strong surge and accounted for three-fourths of the USD 1.6 billion
inflows in Q1 2026, notably higher than the typical 20-50% share in the last 4-5 years. While global investors are
likely to remain cautious in the near-term on account of volatilities in trade,
crude and commodities market, this phase is expected to be transient in nature.
India’s favourable demographics, consumption-driven economy and investor
appetite to expand into both core and alternative assets are likely to keep its
unique positioning in the wider APAC region intact,” said Badal Yagnik,
Chief Executive Officer & Managing Director, Colliers India.
Trends in institutional investment inflows (USD million) –
|
Asset
Class |
Q1
2025 |
Q4
2025 |
Q1
2026 |
Q1
2026 vs Q1 2025 (%
YoY Change) |
Q1
2026 vs Q4 2025 (%
QoQ change) |
|
Office |
434.2 |
3,051.8 |
821.1 |
89% |
-73% |
|
Residential |
302.9 |
427.3 |
324.3 |
7% |
-24% |
|
Alternative assets# |
71.0 |
128.0 |
133.0 |
87% |
4% |
|
Industrial & Warehousing |
307.7 |
409.5 |
106.9 |
-65% |
-74% |
|
Mixed use1 |
191.1 |
111.5 |
32.7 |
-83% |
-71% |
|
Retail |
- |
- |
47.7 |
*NA |
*NA |
|
Hospitality |
- |
79.1 |
170.8 |
*NA |
116% |
|
Total |
1,306.9 |
4,207.2 |
1,636.5 |
25% |
-61% |
Source: Colliers
Note:
#-Alternative assets include data centers, life sciences, senior housing,
holiday homes, student housing, schools etc.
*NA-Not
applicable: Investment inflows were limited
for Retail assets in Q1 and Q4 2025; and for Hospitality assets in Q1
2025
1-Includes investments in mixed-use projects as
well as deals involving investments across multiple assets in various locations
The
institutional flow of funds include investments by Alternative Investment Funds
(AIFs), family offices, foreign corporate groups, foreign banks, pension funds,
private equity, real estate funds & platforms, foreign-funded NBFCs, listed
REITs and sovereign wealth funds. The data has been compiled as per available
information in the public domain.
Delhi
NCR & Bengaluru cumulatively drive 46% of the inflows
At the
city level, Delhi NCR drove over one-fourth of the total quarterly
investments, attracting USD 0.4 billion, followed by Bengaluru with inflows of
USD 0.3 billion. Together, these two markets contributed 46% of real estate
investments in Q1 2026, primarily led by large office transactions in operational
assets across both cities. Meanwhile, multi-city investments with close to USD
0.5 billion inflows accounted for almost one-third of the quarterly capital
inflows. Hospitality and residential assets collectively accounted for nearly
two-thirds of these multi-city investments, reflecting increasing investor
appetite for opportunities beyond Tier I cities – spanning multiple markets and
across wider range of asset classes.
Office assets drive half of the
quarterly inflows followed by residential assets with 20% share
During Q1 2026, institutional
investments in office assets remained strong at USD 0.8 billion, accounting for
half of the overall quarterly inflows and registering almost twice the levels seen
in the corresponding period of last year. Interestingly, domestic investors contributed
over 90% of the office-segment inflows, with their investments rising more than
threefold compared to the levels seen in Q1 2025. This remarkable increase
reflects the growing conviction in India’s high-quality and ready-to-occupy office
assets, supported by diversified tenant profiles, steady cash flows, and
improved visibility on long-term returns.
The residential segment,
followed office segment, attracting USD 0.3 billion inflows during Q1 2026
registering a 7% YoY growth and accounting for one-fifth of the total quarterly
investments. Meanwhile, capital deployment in hospitality, alternatives and
retail segments witnessed a sharp annual increase, largely driven by foreign
investments.
Vimal Nadar, National Director & Head of Research, Colliers India.
“While
office & residential segments continue to remain the front runners of real
estate capital deployment in India, other asset classes such as hospitality, alternatives
and retail witnessed remarkable surge in capital inflows, collectively accounting
for over 20% of the total investment volumes during Q1 2026. Of the USD 0.35
billion cumulative investments across these three asset classes, foreign
capital accounted for a notable 70% share. This reflects diversification of global
capital particularly into alternative assets driven by superior risk-return
profiles and long-term demand traction,” said Vimal Nadar, National Director
& Head of Research, Colliers India.
About
Colliers
Colliers (NASDAQ, TSX:
CIGI) is a leading global diversified professional services company,
specializing in commercial real estate services, engineering consultancy and
investment management. With operations in 70 countries, our 22,000 enterprising
professionals provide exceptional service and expert advice to clients. For
nearly 30 years, our experienced leadership – with substantial inside ownership
– has consistently delivered approximately 20% compound annual investment
returns for shareholders. With annual revenues exceeding $4.5 billion and $99
billion of assets under management, Colliers maximizes the potential of
property, infrastructure and real assets to accelerate the success of our
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