In Q2 2026, both local and foreign investors continued to participate heavily in Indian real estate, with quarterly investments increasing 70% year over year to $2.9 billion. Even amongst global trade & capital deployment uncertainty coming from the West Asia crisis, India’s real estate sector has proven resilience and continued development velocity. According to a Colliers India poll, institutional investments in the sector reached $4.5 billion during H1 2026, a 50% increase over the same period in 2025.
It’s interesting to note that during the first half of 2026, capital inflows reached a six-year high. Growing domestic investor confidence, opportunistic foreign capital deployment, and an increase in investments in alternative and mixed-use assets all contributed to this impressive result. Furthermore, the IMF recently increased its GDP prediction for FY 2027 by 10 basis points to 6.5 percent, indicating that institutional investors are still making long-term investments in India.
In the first half of 2026, domestic investors drove real estate investments in India, with capital deployment increasing 80% year over year to $2.6 billion, or roughly 57% of all inflows. Interest from domestic investors was still fueled by a strong belief in the long-term potential of Indian real estate.
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