India real estate attracts US$ 2.9 billion in Q2 Calendar Year 2026; Chennai, Bengaluru drive 27% inflows
- IBEF
- July 6, 2026
India’s real estate sector continued to attract strong institutional investor confidence in the second quarter of calendar year 2026, with investments surging 70% year-on-year to Rs. 27,045.40 crore (US$ 2.9 billion), according to a Colliers report. Robust participation from both domestic and foreign investors, coupled with several large-ticket transactions, drove the sharp increase in capital inflows. The office segment remained the leading investment destination, followed by mixed-use developments and alternative assets such as data centres and hospitality projects. The momentum lifted institutional investments during the first half of 2026 to Rs. 41,566.5 crore (US$ 4.5 billion), the highest first-half inflow recorded in six years, reflecting sustained optimism about India’s long-term economic and real estate growth prospects. Domestic investments more than doubled during the quarter, underscoring the growing role of local capital in strengthening the sector alongside continued foreign participation.
Among major cities, Chennai and Bengaluru emerged as the top investment destinations, jointly accounting for nearly 27% of institutional inflows during the first half of 2026, with each city attracting around Rs. 5,595.60 crore (US$ 0.6 billion) in investments. Office assets dominated these markets, contributing 85-95% of total investments, supported by sustained demand from global capability centres and corporate occupiers. The report also highlighted rising investments in mixed-use developments and alternative assets, signalling broader diversification across the real estate landscape. With capital inflows reaching a six-year high and the International Monetary Fund-raising India’s FY27 GDP growth forecast to 6.5%, institutional investors continue to view India as a resilient, high-growth market offering long-term opportunities across commercial and emerging real estate segments.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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