Despite a rise in overall FDI, foreign investments in real estate lag

Vinod Behl

Notwithstanding the 18% rise in foreign direct investment (FDI) in India to USD 35.8 billion during H1 FY 26, foreign investments in real estate have been lagging.

According to an Anarock report, private equity (PE) investment in H1 FY 26, fell by 15% YoY to USD 2.2 billion. A Colliers India report points to 9% YoY decline in institutional investments – both foreign institutional investments and domestic institutional investments in 9M CY 2025 at USD 4.3 billion.

However, real estate’s share in total FDI is unclear as Anarock’s USD 2.2 billion figures refer only to PE investment in real estate whereas real estate FDI includes direct foreign investment into construction development, townships, housing ,built-up infra under FDI-allowed sectors. Colliers’ report also does not point to purely real estate FDI numbers as USD 4.3 billion of investment includes investment by both foreign and domestic institutional investors.

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Vinod Behl

Vinod Behl is a senior media professional with over two decades of experience in real estate , construction and infrastructure sector and an overall four decades of rich and varied experience in print, digital and television media. Founder Editor of Realty Plus and Proptoq real estate monthly, he has been writing on real estate and infrastructure for leading publications - Gulf News, ET Realty, Property Times, Business Standard, Business World, The Week and Outlook among others . Former real estate columnist with international news agency- IANS, he is currently real estate columnist with India's premier business news website - Moneycontrol.com He is also Contributing Editor with a leading construction industry magazines group- New Building Materials & Construction World (NBM Media). He is the Editor of Bestseller, Book on Amazon- 'A to Z of Residential Real Estate'. A panelist at real estate conferences, Vinod Behl was honoured by the former Haryana Chief Minister , Bhupinder Singh Hooda for promoting real estate, construction and infrastructure sector through his writings.