Capital inflows into India’s real estate sector rose ~72% year-on-year (Y-o-Y) to USD 5.1 billion in the January-March quarter (Q1 2026) this year, as compared to USD 2.9 billion recorded in Q1 2025, according to the latest India Market Monitor Q1 2026 – Investments released by real estate and infrastructure consultancy CBRE South Asia Pvt. Ltd. These inflows, the highest in any quarter ever, were primarily led by developers, closely followed by Real Estate Investment Trusts (REITs).

According to the report, the period also witnessed a significant ~53% quarter-on-quarter (Q-o-Q) investment surge from USD 3.3 billion in Q4 2025, reflecting a sustained institutional investor confidence in the fundamentals of the country’s real estate sector.

“This underscores the high confidence of domestic investors and institutional players in the Indian real estate growth story,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “Despite global macroeconomic headwinds, our resilient economic framework continues to attract deep capital. The multi-fold increase in REIT activity is particularly encouraging, signaling a maturing market that is increasingly shifting towards institutionalised, yield-generating assets. Going forward, we anticipate foreign capital to re-engage strongly, driven by clearer deployment strategies.”

During Q1 2026, the investment momentum was mainly led by substantial inflows into built-up office assets and continued activity in land / development site acquisitions, which together commanded more than 90% of the overall equity investment flows. Domestic investors, led primarily by developers, dominated the investment landscape with a ~96% share of the overall inflows.

Developers constituted ~42% of the total capital inflows, closely followed by REITs at ~40%. Notably, investments by REITs surpassed USD 2.0 billion, reflecting a multi-fold increase from the previous quarter and representing a substantial share of the total investment pie.

The report also outlined that a significant portion of this capital was directed towards land acquisitions. Over 73% of the funds dedicated to site acquisitions were deployed for mixed-use and residential projects, with the rest committed to office, warehousing, and hospitality developments.

Gaurav Kumar, Managing Director & Co-Head, Capital Markets, India, CBRE, said, “We are observing a sustained preference for high-quality office space, underpinned by significant inflows from domestic institutional capital, as well as foreign capital, most notably via REITs. This demand, coupled with increased site acquisitions for mixed-use & residential development, underscores a resilient market outlook. Looking ahead, we expect the next phase of investment to be defined by a strategic balance of yield-focused income assets and high-growth opportunistic plays.”

Bengaluru, Mumbai, and Delhi-NCR cumulatively accounted for around 65% of the total investment share. Notably, capital from Singapore and Canada comprised ~72% and ~27%, respectively, of total foreign inflows.

The underlying strength of the residential sector was further underscored by the establishment of new investment and development platforms worth approximately USD 234 million during the quarter, supplementing the primary capital infusions of USD 5.1 billion.