Jan-Sep 2026 investments in Indian real estate touch USD 5.9 Bn, highest 9-month volume in recent years: Colliers India

(MENAFN- MENAFNEditorial) Gurgaon, 08 October 2026: Institutional investments in Indian real estate remained strong during the first three quarters of 2026, with capital inflows reaching USD 5.9 billion, reflecting a 39% Year-on-Year (YoY) growth. This marks the highest 9-month investment volume in recent years, underscoring the continued investor optimism in India’s real estate sector. This optimism is more significant as Indian real estate has largely remained resilient to external volatilities, despite bleak global economic outlook and caution towards capital allocation in markets around the world.
Domestic investors remained the dominant source of capital during the nine-month period, contributing USD 3.5 billion and accounting close to 60% of the total investments during the period. A strong 59% YoY increase in domestic capital inflows highlights the depth and maturity of core real estate asset classes in India. At the same time, foreign investments also recorded a notable growth during the first three quarters of 2026, rising 17% YoY to about USD 2.4 billion. A significant share of foreign capital was directed towards developmental assets, driven by investors’ ongoing pursuit of long-term value creation in alternative, hospitality and mixed-use projects.
During Q3 2026, institutional capital inflows stood at USD 1.4 billion, a 12% YoY increase, albeit witnessing a 51% drop on a sequential basis.
“The strengthening of domestic capital is perhaps the most defining theme of institutional investments in Indian real estate. In Q3 2026, domestic investors drove about USD 0.9 billion inflows, accounting for nearly two-thirds of the total investments. Local investors continue to prefer core assets, with residential & office segments collectively accounting for 46% of the domestic capital allocation during the quarter. While residential investments were largely directed towards developmental projects, office investments were primarily focused on operational assets. Looking ahead, with evolving preferences across the risk-return spectrum, growing depth in domestic capital is expected to drive real estate investments in India, along with an uptick in foreign investment volumes in upcoming quarters,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.
Trends in institutional investment inflows (USD million) –
Asset ClassQ3 2025Q2 2026Q3 2026Q3 2026 vs Q3 2025
(% YoY Change)Q3 2026 vs Q2 2026
(% QoQ change)YTD 2025 (Jan-Sep 2025)YTD 2026 (Jan-Sep 2026)YTD 2026 vs YTD 2025 (%YoY change)
Office779.91056.9291.3-63%-72%1,482.72,169.346%
Residential319.7146.1224.1-30%53%1,139.7694.5-39%
Industrial & Warehousing17.084.5180.5962%114%324.7371.915%
Retail-37.5-*NA-100%380.085.2-78%
Hospitality-108.8352.6*NA224%88.2632.2617%
Alternate assets173.5635.0200.2172%-68%144.5968.2570%
Mixed use279.4806.7167.6111%-79%707.81,007.042%
Total1,269.52,875.51,416.312%-51%4,267.65,928.339%
Note: 1-Alternative assets include data centers, life sciences, senior housing, holiday homes, student housing, schools, real estate services etc.
*NA-Not applicable: Investment inflows were limited for Retail in Q3 2025 and in Q3 2026; and for hospitality assets in Q3 2025; 2-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.

Office segment dominates with 37% share; hospitality & alternative assets see multi-fold growth
During the first three quarters of 2026, office segment attracted USD 2.2 billion in capital inflows, witnessing a 46% YoY rise. Domestic investors played a pivotal role, contributing more than 90% of the institutional inflows in the segment during the same period. Sustained leasing momentum across high-quality Grade A office assets and long-term demand prospects continue to reinforce the segment’s attractiveness amongst investors. While office assets remained the major driver of real estate investments, accounting for 37% share during the nine-month period, mixed-use & alternative assets followed, with each of them corresponding to a share of 16-17%.
Interestingly, alternative & hospitality segments have been one of the best performing segments in 2026 so far. During the nine-month period, alternative & hospitality assets garnered over USD 0.9 billion & USD 0.6 billion investments respectively, individually rising 6-7X times compared to the corresponding period of 2025. Strong foreign investor interest underpinned both segments, with overseas capital accounting for nearly three-fourths of alternative asset investments and almost the entirety of hospitality inflows during the period.
“Investor participation remained broad-based across real asset classes, albeit slightly more skewed on account of a marquee transaction in hospitality segment. All three core segments - office, residential and industrial & warehousing witnessed around USD 0.2-0.3 billion inflows each during Q3 2026. These three segments collectively accounted for nearly half of the quarterly investments led by domestic investors. Most importantly, buoyed by strong capital allocation across real estate segments, the first nine months of 2026 have already seen institutional investments to the tune of USD 5.9 billion, a 9-month high in recent years. This reiterates the confidence of investors in Indian real estate, even in the wake of growth moderation elsewhere,” said Vimal Nadar, National Director & Head of Research, Colliers India.
Bengaluru, Chennai & Delhi NCR collectively account for nearly one-third of the inflows; multi-city deals see more than 2X rise YoY
At around USD 0.6 billion inflows each, Bengaluru, Chennai & Delhi NCR dominated investment volumes, cumulatively accounting for nearly one-third share during the first nine months of 2026. Office assets drove majority of the investment inflows in these three cities during the same period. In fact, Delhi NCR witnessed close to three-fold rise in investment inflows during the nine-month period, reiterating sustained investor confidence in income-generating & operational Grade A assets.
At the same time, investor preference for diversified, multi-location portfolios remained noteworthy and surged over 2X times YoY during the first nine months of 2026. Multi-city deals attracted USD 2.9 billion inflows and contributed about half of the investment volumes during the same period.
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Select PE deals in Q3 2026
InvestorInvesteeDeal Value (in USD million)Asset classCity
Canada Pension Plan Investment Board (CPPIB)Prestige Hospitality Ventures Ltd (PHVL) (Hospitality platform of Prestige Estates Projects)312.0HospitalityOthers/ Multi City
Brookfield India Real Estate Trust and Prime Offices Fund178.2OfficeMumbai
Kotak Realty FundSmartworld Developers83.7ResidentialDelhi-NCR
ASK Property FundBRV Group & KW Group31.8ResidentialDelhi-NCR
Certus Capital4S Developers28.5ResidentialDelhi-NCR

Source: Colliers
Note: 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.

Select PE deals in YTD (Jan-Sep) 2026
QuarterInvestorInvesteeDeal Value (in USD million)Asset classCity
Q2 2026Abu Dhabi Investment Authority (ADIA)Kotak Alternate Asset Managers675.0Mixed-useOthers/ Multi City
Q2 2026Canada Pension Plan Investment Board (CPPIB)Ctrl S440.0AlternativesOthers/ Multi City
Q2 2026360 One Private Equity Fund and Mindspace Business Parks REITAIGP2 Chennai 1 Pte Ltd. 321.2OfficeChennai
Q3 2026Canada Pension Plan Investment Board (CPPIB)Prestige Hospitality Ventures Ltd (PHVL)
(Hospitality platform of Prestige Estates Projects)312.0HospitalityOthers/ Multi City
Q2 2026Mindspace Business Parks REITSycamore Properties Pvt Ltd & Content Properties Pvt Ltd270.0OfficeChennai
Source: Colliers


City wise investment inflows in Q3 2026 and YTD 2026 (in USD million) –
CityQ3 2025Q3 2026Investment share in Q3 2026 (%)Q3 2026 vs Q3 2025
(% YoY Change)YTD 2025 (Jan-Sep 2025)YTD 2026
(Jan-Sep 2026)Investment share in YTD 2026 (%)YTD 2026 vs YTD 2025 (%YoY change)
Bengaluru31.329.02%-7%530.1643.411%21%
Chennai287.024.52%-91%335.3639.411%91%
Delhi NCR29.2157.111%438%209.6581.710%178%
Hyderabad141.2-0%-100%397.473.01%-82%
Kolkata--0%*NA380.037.51%-90%
Mumbai153.2240.217%57%809.5518.98%-36%
Pune280.0105.17%-62%297.3492.48%66%
Others/ Multi City347.6860.461%148%1,308.42,942.050%125%
Total1,269.51,416.3100%12%4,267.65,928.3100%39%
Source: Colliers
Note: *Investment inflows were limited in Kolkata during Q3 2025 & Q3 2026 and in Hyderabad during Q3 2026
Others/Multi city includes deals spanning multiple major cities such as Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune and/or Tier II/III cities across India

Asset class wise share of investment inflows in Q3 2026 and YTD 2026
Asset classInvestment share % Q3 2026Investment share % YTD 2026
Office20%37%
Residential16%12%
Industrial & Warehousing13%6%
Retail0%1%
Hospitality25%11%
Alternatives114%16%
Mixed use212%17%
Total100%100%
Source: Colliers
Note:
1-Alternate assets include data centers, life sciences, senior housing, holiday homes, student housing, schools, real estate services etc.
2-Includes investments in mixed-use projects as well as deals involving investments across multiple assets in various locations

Investor type wise investment inflows in Q3 2026 and YTD 2026 (in USD million) –
Q3 2025Q3 2026Investment share in Q3 2026 (%)Q2 2026 vs Q2 2025
(% YoY Change)YTD 2025
(Jan-Sep 2025)YTD 2026
(Jan-Sep 2026)Investment share in YTD 2026 (%)YTD 2026 vs YTD 2025 (%YoY change)
Domestic762.4926.365%21%2,189.93,491.759%59%
Foreign507.1490.035%-3%2,077.72,436.641%17%
Total1,269.51,416.3100%12%4,267.65,928.3100%39%
Source: Colliers

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