Capital inflows into India’s real estate sector rose ~72% year-on-year (Y-o-Y) to $5.1 billion in the January-March quarter (Q1 2026) this year, as compared to $2.9 billion recorded in Q1 2025. These inflows, the highest in any quarter, were led primarily by developers, followed closely by Real Estate Investment Trusts (REITs). Bengaluru, Mumbai, and Delhi-NCR cumulatively accounted for around 65% of the total investment share, a report has said.
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 sustained institutional investor confidence in the fundamentals of the country’s real estate sector.
Bengaluru, Mumbai, and Delhi-NCR accounted for around 65% of total investment
The report also noted that Mumbai, and accounted for around 65% of total investment. Notably, capital from Singapore and Canada comprised ~72% and ~27%, respectively, of total foreign inflows.
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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, the report said.
During Q1 2026, investment momentum was led by substantial inflows into built-up office assets and continued activity in land / development site acquisitions, which together accounted for more than 90% of overall equity investment flows. Domestic investors, led primarily by developers, dominated the investment landscape, accounting for ~96% of overall inflows, it said.
Significant capital directed towards land acquisitions
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 to mixed-use and residential projects, with the remaining funds committed to office, warehousing, and hospitality developments, the report showed.
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“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 and 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, signalling 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,” he said.