Mumbai, May 4:India’s real estate investment market has sustained its exceptional momentum into 2026, with first quarter (January – March) transaction volumes reaching USD 1.7 billion, a 37% year-on-year increase that underscores the sector’s continued attractiveness to institutional investors, according to recent data by JLL. This growth comes despite extended decision-making timelines driven by global macroeconomic complexity, demonstrating the resilience and fundamental strength of India’s real estate market. The quarter witnessed a significant structural shift in investor preferences, with core asset acquisitions surging 178% to USD 1.03 billion. This trend has accelerated into Q2, with core asset deals already totaling USD 1.48 billion, signaling sustained confidence in stable, income-generating properties.
“India’s investment market continues to demonstrate remarkable resilience amid global headwinds. The 178% surge in core asset acquisitions reflects a fundamental shift toward stable, income-generating properties, while the office sector’s dominance underscores strong operational fundamentals. Domestic capital remains the backbone of our market, with REITs playing an instrumental role in deepening liquidity. Deal momentum remains strong as cross-border investors successfully close transactions. India’s structural evolution positions us well to sustain this growth trajectory through 2026,” said Lata Pillai, Senior Managing Director & Head of Capital Markets, JLL India.
Looking back as we move ahead
The real estate sector achieved exceptional growth during 2024 and 2025, which emerged as record-breaking years for institutional capital inflows. These two years combined witnessed institutional capital flow of USD 19.4 billion, marking a historic milestone for the industry.
This exceptional performance, when investments peaked at an all-time high, cemented these two consecutive years as the strongest performance period in India’s institutional real estate investment history. The sustained upward trend, particularly the record-breaking achievements of 2024 and 2025, positions India as one of the most attractive destinations for institutional real estate capital globally, with continued robust growth expected as new investment opportunities emerge across diverse segments.
JLL Research
The Indian real estate sector has demonstrated remarkable resilience with an impressive trajectory in institutional investments over recent years. The market witnessed steady upward momentum beginning in 2021, when institutional capital deployment stood at USD 4,211 million, marking an initial phase of growth as markets stabilized post the pandemic. This positive sentiment continued to strengthen in 2022, with investments climbing to USD 5,151 million, representing a robust 22% year-over-year increase that signaled strong market momentum and renewed investor confidence in India’s real estate fundamentals. Investments sustained this momentum in 2023, maintaining the trend of exceeding the USD 5 billion mark annually, a pattern consistently observed since 2018.
Domestic Capital Drives Market Momentum since CY 2025
The Indian real estate investment market has experienced a pivotal shift, as domestic institutional investors secured a dominant 52% market share in 2025. This milestone represents the first instance of domestic capital leading the sector since 2014, marking a decisive departure from the 2015-2024 decade when foreign.
JLL Research
Institutional investors-maintained market dominance. This domestic resilience has been instrumental in offsetting reduced cross-border capital flows, as foreign institutional investors adopted a more cautious stance amid persistent geopolitical risks. The momentum of domestic capital has strengthened further in early 2026, with local institutional investors comprising 72% of total investment volume in the first quarter. This surge underscores the sustained commitment and growing firepower of domestic players, building upon the solid foundation established in 2025. The emergence of domestic capital as the primary force reduces vulnerability to unpredictable international capital movements while demonstrating heightened institutional conviction in real estate as a core investment category. This structural evolution positions the Indian real estate sector for enduring stability despite global market turbulence.
The calendar year 2025 and the first quarter of 2026 have been characterized by the prominent role of Indian REITs and Infrastructure Investment Trusts (InvITs), which have emerged as pivotal drivers of the domestic capital surge. These listed vehicles deployed USD 2.8 billion, representing 47% of total domestic institutional capital, primarily targeting core asset acquisitions in established markets. Indian private equity players have complemented this momentum, contributing a substantial 42% share of overall domestic capital deployment. This dynamic demonstrates the evolution and maturation of India’s REIT ecosystem, alongside deepening institutional confidence in structured real estate investment platforms as credible and efficient deployment vehicles for large-scale capital allocation.
Office captures nearly half of all investment activity
Between the period CY 2021 and Q1 2026, office sector attracted the largest share of investment capital at 45%, followed by residential sector at 28%. Strong fundamentals have driven the office sector’s performance, including stable occupancy rates, consistent rental increases, and quality supply entering the market.
Domestic investor activity in office properties has gained significant momentum during this timeframe, particularly since 2024, as confidence grows in the sector’s predictable income generation. REITs have emerged as key catalysts in this transformation, deepening market liquidity while strengthening investor trust through structured governance frameworks and consistent dividend payouts.
The great shift – Rise of domestic institutional investment in office real estate
JLL Research
India positioned for sustained growth despite global headwinds
Looking ahead, India’s real estate investment market is poised for continued momentum, underpinned by robust economic fundamentals, expanding infrastructure networks, and growing recognition as a stable destination within emerging market portfolios. The convergence of strengthening domestic capital, an increasingly mature REIT ecosystem, and potential currency-driven opportunities for foreign investors creates a compelling environment for sustained transaction volumes throughout 2026 and beyond.
While global macroeconomic conditions, monetary policy trajectories in major economies and geopolitical developments will continue to influence capital allocation decisions and transaction timelines, India demonstrates strong fundamentals. The market’s structural transformation, characterized by domestic capital dominance and sector diversification, positions it to navigate external volatility with enhanced resilience.
As institutional investors increasingly recognize India’s capacity to deliver stable, risk-adjusted returns, the nation’s real estate sector stands ready to capitalize on both domestic conviction and renewed international interest in the quarters ahead.
- Core asset investments – investments in ready / rent generating real estate assets.
- Non-Core asset investments – investments at development stage including land purchase.
