The Indian real estate sector recorded the highest first-quarter inflow of institutional investments since 2022, valued at USD 1.4 Bn. Despite registering a quarterly decline of 62% due to an exceptionally high base in the preceding quarter, investments surged by 74% over the same period a year earlier. This highlights strong investor confidence in India’s real estate sector, even as global headwinds continue to intensify.

Driven by strong demand from GCCs, commercial assets dominated investment activity in Q1 2026 with 80% share, rising from 38% a year earlier. Interestingly, in value terms, the segment attracted over USD 1.1 Bn in investments, registering a sharp 266% year-on-year increase, despite a 51% decline on a quarterly basis.

On the other hand, investments in residential assets declined by 53% quarter-on-quarter and 59% year-on-year to USD 0.2 Bn in Q1 2026. Despite the decline in absolute terms, the share of investments in residential assets rose marginally to 15% in Q1 2026 from 12% in the previous quarter.

With investments totalling just USD 22 Mn, the share of investments in industrial and warehousing sector declined from 17% in the previous quarter to a mere 1% in Q1 2026. This reflects limited investor traction in the segment.

Because of rapidly escalating geopolitical frictions and macroeconomic pressures, the share of foreign investments declined sharply from over 40% a year earlier to 13% in Q1 2026. Subsequently, the share of co-investments declined to 15% in Q1 2026 from 37% in the previous quarter.

However, as domestic investors emerge as the primary drivers of growth in an increasingly volatile global landscape, the share of domestic investments rose significantly from 22% in the previous quarter to 72% in Q1 2026. In value terms, with over USD 1 Bn worth of investments, domestic inflows increased by 118% year-on-year and 25% quarter-on-quarter, underscoring strong confidence in India’s long-term growth prospects.

Shrinivas Rao, FRICS, CEO, Vestian said, “With a sharp uptick in domestic investments, India’s real estate sector continues to demonstrate resilience  in the face of  rising geopolitical tensions and macroeconomic headwinds. As foreign participation moderates, domestic capital is sustaining the market momentum, while GCC-led demand continues to bolster confidence in commercial assets—reinforcing India’s appeal as a long-term investment destination.”