India’s realty pulls in $5.9 billion in institutional capital in nine months

Institutional investors poured $5.93 billion into Indian real estate during January–September 2026, a 39% jump from a year earlier, signalling continued strong investor appetite for the sector, according to Colliers data.

The nine-month surge was led by strong growth across several major markets. The Delhi-NCR region recorded the sharpest increase, with inflows jumping 178% year-on-year to $581.7 million. Chennai followed with a 91% rise to $639.4 million. Pune saw investments climb 66% to $492.4 million. Bengaluru attracted $643.4 million, up 21%.

On a year-to-date basis, Mumbai saw inflows fall 36% to $518.9 million, though it rebounded strongly in Q3 alone with a 57% YoY surge to $240.2 million. Meanwhile, Hyderabad and Kolkata recorded severe drops (-82% and -90%, respectively), with Hyderabad attracting zero institutional inflows during Q3.

Investment inflows in Q3 rose 12% year-on-year to $1.42 billion. Domestic investors drove the quarterly growth, rising 21% year-on-year to account for 65% of inflows at $926.3 million, while foreign investments dipped 3% to $490 million.

Deals spanning multiple cities accounted for the largest share of Q3 investments at 61%, with inflows into the category surging 148% year-on-year to $860.4 million.

Hospitality emerged as the biggest asset class in Q3, accounting for 25% of total quarterly investments, followed by office at 20%, residential at 16%, alternatives at 14%, industrial & warehousing at 13%, and mixed-use assets at 12%.

The largest transaction during Q3 was Canada Pension Plan Investment Board's (CPPIB) $312 million investment in Prestige Hospitality Ventures, the hospitality platform of Prestige Estates Projects. Other major Q3 deals included Brookfield India Real Estate Trust and Prime Offices Fund investing $178.2 million in Mumbai office assets, and Kotak Realty Fund investing $83.7 million in Delhi-NCR residential developer Smartworld Developers.

Over the full nine-month period, office assets remained the dominant investment destination, accounting for 37% of total inflows. Mixed-use assets accounted for 17%, alternatives 16%, residential 12%, industrial & warehousing 6%, and retail 1%.

Domestic capital has gained ground sharply in 2026. On a year-to-date basis, investments by domestic investors rose 59% year-on-year to $3.49 billion, accounting for 59% of total nine-month inflows, while foreign investment rose 17% to $2.44 billion.