Foreign Capital Drives India Real Estate Investment to $2.1 Billion

Institutional investments in India's real estate sector reached $2.1 billion in the third quarter of 2026, marking a 20% increase year-on-year and a 12% rise from the previous quarter. According to a report by Cushman & Wakefield, foreign investors regained the lead after four quarters of domestic dominance, contributing $1.4 billion, or 68% of total inflows. Domestic institutions provided the remaining $0.7 billion, bringing year-to-date investments to $5.5 billion.

Digital infrastructure emerged as the primary asset preference, with data centers attracting 52% of all institutional investments. Hospitality and office spaces followed at 15% and 9%, respectively. Private equity funds drove the vast majority of activity at 88%, while Real Estate Investment Trusts accounted for 12%.

Geographically, multi-city transactions dominated the quarter at 76%. Direct allocations were more concentrated, with Mumbai receiving 9% and Delhi-NCR receiving 6%. Somy Thomas noted that the higher share of foreign capital reflects the attractiveness of the sector and the breadth of opportunities across asset classes.