India’s real estate investment landscape is increasingly being shaped by domestic institutional capital, even as global uncertainty continues to temper foreign inflows, according to a new industry assessment. The latest findings indicate that local investors are providing greater stability to the sector, helping sustain deal activity across major property segments despite uneven global conditions.

In its Q1 2026 Capital MarketBeat report, Cushman & Wakefield said domestic institutional investors contributed 76 per cent of total inflows during the quarter, amounting to USD 1.2 billion. Foreign investors accounted for the remaining 24 per cent, or USD 0.4 billion. Overall institutional investment stood at USD 1.6 billion, marking a 26 per cent year-on-year increase, though it fell sharply by 52 per cent on a sequential basis.

The report observed that international capital remains highly reactive to global macroeconomic shifts and geopolitical developments, leading to fluctuating investment patterns. In contrast, domestic investors have shown stronger continuity, playing a key role in cushioning volatility and maintaining steady deployment across cycles.

It further highlighted a sustained rebalancing of capital sources over recent quarters. Domestic participation has exceeded foreign inflows in four of the past five quarters, reflecting growing confidence among local investors in real estate as a long-term investment avenue. Although the domestic share eased slightly from 81 per cent in Q4 2025 to 76 per cent in Q1 2026, the broader trajectory continues to favour home-grown capital.

According to the report, private equity remained the dominant investment channel, accounting for 74 per cent of total inflows, while Real Estate Investment Trusts (REITs) made up the remaining 26 per cent. This indicates a continued preference for structured investment instruments within the sector.

Sector-wise, office assets attracted the highest share of institutional capital at USD 1.0 billion, representing 64 per cent of total inflows. Hospitality followed with 13 per cent, while residential real estate accounted for 9 per cent, reflecting selective diversification into non-commercial segments.

At the city level, Delhi NCR led institutional inflows with a 28 per cent share, followed by Chennai at 17 per cent and Bengaluru at 14 per cent, underscoring broad-based interest across major metropolitan markets despite ongoing global headwinds.