India's real estate investment sector has demonstrated remarkable resilience and growth, with transaction volumes reaching $1.7 billion in the first quarter of 2026. This marks a significant increase of 37 percent compared to the same period last year, according to a recent report by JLL. The report highlights a notable structural shift toward core asset acquisitions, which surged by an impressive 178 percent to $1.03 billion during the quarter. This trend indicates a growing preference among investors for stable, income-generating properties, reflecting strong operational fundamentals in the market.
As 2026 progresses, the momentum appears to be sustaining, with core asset deals already amounting to $1.48 billion in the second quarter. This consistent activity signals a robust confidence among investors in India's real estate market, particularly in stable assets that offer reliable returns. Lata Pillai, Senior Managing Director & Head of Capital Markets at JLL India, emphasized that the ongoing deal momentum is largely driven by cross-border investors successfully closing transactions, further solidifying India’s position as an attractive investment destination amid global uncertainties.
The report also notes that India experienced a landmark growth phase during 2024 and 2025, with total institutional capital inflows reaching $19.4 billion, marking a historic milestone for the industry. In a significant shift, domestic institutional investors captured a dominant 52 percent market share in 2025, the first instance of local capital leading the sector since 2014. This change underscores a pivotal transition from the previous decade, where foreign institutional investors maintained dominance. The resilience of domestic investors has played a crucial role in countering the decline in cross-border capital flows, as foreign entities have adopted a more cautious approach due to ongoing geopolitical risks.
In the first quarter of 2026, local institutional investors accounted for a substantial 72 percent of the total investment volume. The rise of Indian Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) has been a significant factor in this domestic capital surge, with these entities collectively investing $2.8 billion, or 47 percent of total domestic institutional capital. Additionally, Indian private equity firms have contributed significantly, representing 42 percent of overall domestic capital deployment. Looking ahead, the Indian real estate investment market is poised for continued growth, supported by strong economic fundamentals, expanding infrastructure networks, and an increasing reputation as a stable investment option within emerging market portfolios.