India's real estate market has experienced unprecedented growth, with equity inflows reaching a record USD 30.7 billion from 2024 through the first quarter of 2026, according to a recent report by CBRE. This figure represents an impressive 88% increase compared to the USD 16.3 billion recorded in the previous fiscal year of 2022-2023. The report, released by former HDFC Chairman Deepak Parekh during the CII BFSI Summit 2026, highlights that land and office assets were predominant, accounting for over 75% of total capital deployment during this period.
The report, titled "Deploying Capital in a Transformative Era: The Four-Quadrant Analysis," notes that approximately 6,025 acres of land were acquired for greenfield developments, with an estimated capital investment of USD 13 billion. More than 80% of these investments were allocated towards residential, mixed-use, and office projects, indicating a robust demand for diverse real estate offerings. Institutional investors have played a pivotal role, contributing around 30% of total investments and experiencing a two-fold increase in capital flows compared to the previous year, driven mainly by investments in core segments such as built-up office spaces, retail, and logistics assets.
A significant highlight of the report is the increased activity of Real Estate Investment Trusts (REITs), which deployed a record USD 2 billion in Q1 2026 alone. This figure reflects a substantial rise both quarter-on-quarter and year-on-year, contributing to a total REIT deployment of USD 3.8 billion since 2024, marking a 66% increase over the 2022-2023 levels. These trends underscore the growing institutional interest in India's real estate sector, which has been bolstered by recent structural reforms aimed at enhancing transparency and credibility within the market.
Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East & Africa, emphasized the impact of these structural reforms, stating that a decade of policy changes—including the introduction of RERA and GST—has significantly strengthened the sector's credibility. He noted that the renewed engagement of financial institutions signals a transformative shift in market dynamics, highlighting that the banking, financial services, and insurance (BFSI) sector has not only returned to real estate but has also redefined its relationship with the market. Additionally, the report observed a notable growth in debt markets, with bank credit to commercial real estate increasing by 16% year-on-year from March 2025 to February 2026, alongside non-banking financial companies (NBFCs) reaching a five-year high in advances to the sector. This comprehensive growth trajectory positions India's real estate market as a resilient and attractive investment destination.