Chennai Bengaluru Lead Institutional Real Estate Inflows
Real Estate

Chennai Bengaluru Lead Institutional Real Estate Inflows

India's real estate sector sustained momentum in the first half of 2026 as institutional investors committed substantial capital despite global uncertainties arising from the West Asia crisis. Institutional inflows rose 50 per cent year-on-year to USD 4.5 bn in H1 2026, with the second quarter registering a 70 per cent year-on-year increase to USD 2.9 bn. The International Monetary Fund lifted its GDP forecast for fiscal year 2027 by ten basis points to 6.5 per cent. Multi-city transactions accounted for 46 per cent of overall investments.

Chennai and Bengaluru emerged as the largest destinations, together attracting about USD 1.2 bn and representing nearly 27 per cent of institutional inflows in H1 2026. The office segment accounted for 85–95 per cent of inflows in both cities, with investors preferring operational assets. Tier two and three cities including Coorg, Hosur, Coimbatore, Kochi and Ujjain also attracted meaningful capital, particularly into hospitality, industrial, warehousing and residential sectors. Mixed-city deals comprised a substantial share of overall activity.

Domestic investors were the principal drivers of activity, with capital deployment up 80 per cent year-on-year to USD 2.6 bn and accounting for about 57 per cent of total inflows in H1 2026. Foreign capital recovered in the quarter, lifted by select large transactions and strategic equity plays that took foreign inflows to USD 1.9 bn, a 24 per cent year-on-year rise. The office segment attracted roughly USD 1.9 bn overall, representing over 40 per cent of capital deployed, while residential investments declined 43 per cent to USD 0.5 bn as cost pressures and moderating sales affected project viability.

Mixed-use assets and alternative strategies saw notable inflows, each attracting about USD 0.8 bn and together contributing close to one-fifth of total investment in H1 2026. The recent REIT listings and ongoing office leasing momentum are expected to sustain investor interest.

India's real estate sector sustained momentum in the first half of 2026 as institutional investors committed substantial capital despite global uncertainties arising from the West Asia crisis. Institutional inflows rose 50 per cent year-on-year to USD 4.5 bn in H1 2026, with the second quarter registering a 70 per cent year-on-year increase to USD 2.9 bn. The International Monetary Fund lifted its GDP forecast for fiscal year 2027 by ten basis points to 6.5 per cent. Multi-city transactions accounted for 46 per cent of overall investments. Chennai and Bengaluru emerged as the largest destinations, together attracting about USD 1.2 bn and representing nearly 27 per cent of institutional inflows in H1 2026. The office segment accounted for 85–95 per cent of inflows in both cities, with investors preferring operational assets. Tier two and three cities including Coorg, Hosur, Coimbatore, Kochi and Ujjain also attracted meaningful capital, particularly into hospitality, industrial, warehousing and residential sectors. Mixed-city deals comprised a substantial share of overall activity. Domestic investors were the principal drivers of activity, with capital deployment up 80 per cent year-on-year to USD 2.6 bn and accounting for about 57 per cent of total inflows in H1 2026. Foreign capital recovered in the quarter, lifted by select large transactions and strategic equity plays that took foreign inflows to USD 1.9 bn, a 24 per cent year-on-year rise. The office segment attracted roughly USD 1.9 bn overall, representing over 40 per cent of capital deployed, while residential investments declined 43 per cent to USD 0.5 bn as cost pressures and moderating sales affected project viability. Mixed-use assets and alternative strategies saw notable inflows, each attracting about USD 0.8 bn and together contributing close to one-fifth of total investment in H1 2026. The recent REIT listings and ongoing office leasing momentum are expected to sustain investor interest.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement