India Realty Investment Defies Global Volatility; Institutional Inflows Rise 23% in the First Half of 2026
- IBEF
- June 29, 2026
India's real estate sector continued to attract strong institutional investment in the first half of 2026 despite global geopolitical uncertainty, currency volatility and inflationary pressures. According to JLL India, institutional investment volumes increased 23% year-on-year to Rs. 40,801 crore (US$ 4.33 billion) during January-June 2026, with the period recording 54 transactions, the highest-ever half-year deal count in the country's real estate market. The strong performance follows a record Rs. 98,942 crore (US$ 10.5 billion) of institutional investments in 2025. Domestic institutional investors played a pivotal role, contributing Rs. 26,384 crore (US$ 2.8 billion) and accounting for 64% of total investment volumes, the highest share recorded to date. The increased participation of domestic private equity funds and Real Estate Investment Trusts (REITs) helped offset a decline in foreign capital inflows amid global economic uncertainty.
The office segment emerged as the largest recipient of institutional capital, attracting Rs. 21,673 crore (US$ 2.3 billion) across 17 transactions and accounting for 54% of total investment volumes. Domestic investors contributed 89% of office-sector investments, supported by strong occupier demand, expansion of Global Capability Centres (GCCs), stabilising return-to-office trends and attractive rental yields. Non-core assets accounted for 57% of total investment activity, while Bengaluru and Chennai together attracted 34% of institutional capital flows. Although average deal sizes declined to Rs. 754 crore (US$ 80 million) from Rs. 1,253 crore (US$ 133 million) in H1 2025, the increase in transaction volumes indicates broader investor participation and portfolio diversification. Industry experts expect foreign investment activity to gradually recover as geopolitical conditions stabilise, with total institutional real estate investments projected to reach Rs. 80,096 crore-84,807 crore (US$ 8.50 billion-US$ 9.00 billion) by the end of 2026 if current momentum continues.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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