Institutional investments in Indian real estate reached USD 5.9 billion during January-September 2026, registering a 39 per cent year-on-year increase and marking the highest nine-month investment volume in recent years, according to Colliers India. Domestic investors accounted for nearly 60 per cent of the inflows, contributing USD 3.5 billion, up 59 per cent from the corresponding period last year. Foreign investments rose 17 per cent to approximately USD 2.4 billion.

During the third quarter of 2026, institutional investments stood at USD 1.4 billion, an increase of 12 per cent year-on-year, although inflows declined 51 per cent sequentially. Domestic investors contributed around USD 900 million, accounting for nearly two-thirds of the quarterly total.

Office assets attracted USD 2.2 billion during the first nine months of 2026, registering a 46 per cent year-on-year increase and accounting for 37 per cent of total institutional investments. Domestic investors contributed more than 90 per cent of the capital inflows into the segment.

Mixed-use and alternative assets followed, each accounting for around 16-17 per cent of total investments. Alternative assets, including data centres, life sciences, senior housing and student housing, attracted USD 968 million, while hospitality investments reached USD 632 million. Both segments recorded substantial growth compared with the corresponding period in 2025.

Foreign investors accounted for nearly three-fourths of alternative asset investments and almost all hospitality inflows during the nine-month period.

In Q3 2026, hospitality attracted USD 353 million, accounting for around 25 per cent of quarterly investments, followed by office assets. Industrial and warehousing investments reached USD 181 million, while residential assets attracted USD 224 million.

Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India, said domestic investors were increasingly driving institutional investment activity, particularly in core real estate assets. He noted that residential and office assets together accounted for 46 per cent of domestic capital allocation during Q3 2026.

Bengaluru, Chennai and Delhi NCR each attracted approximately USD 600 million in institutional investments during January-September 2026, together accounting for nearly one-third of the total inflows. Office assets drove much of the investment activity in these markets. Delhi NCR recorded a 178 per cent year-on-year increase in nine-month investments to USD 582 million.

Multi-city transactions attracted USD 2.9 billion, accounting for approximately half of total institutional investments during the period. This represented a 125 per cent increase over the corresponding period in 2025.

Vimal Nadar, National Director and Head of Research, Colliers India, said investment activity remained broad-based across real estate segments, with office, residential and industrial and warehousing assets each attracting around USD 200-300 million during the quarter. He added that the nine-month investment total reflected continued investor confidence in the Indian real estate market.