Realty sector gets $1.6 bn institutional inflows in Jan-Mar; down 52% from previous quarter

Institutional investments in India’s real estate sector stood at $1.6 billion during January-March 2026, rising 26 per cent year-on-year but falling sharply 52 per cent from the previous quarter amid the Middle East conflict.Investments had totalled $1.27 billion in January-March 2025 and $3.35 billion in the October-December quarter of last year, according to Cushman & Wakefield and reported by PTI.The consultant said domestic investors infused $1.21 billion in the first quarter of 2026, compared with $0.75 billion a year earlier and $2.71 billion in the preceding quarter.Foreign investments stood at $0.39 billion during January-March 2026, lower than $0.52 billion in the same period last year and $0.61 billion in October-December.“Domestic investors have now accounted for a larger share of institutional investments in four of the last five quarters, underscoring a sustained rebalancing of capital flows.“At a time when foreign capital remains sensitive to global macroeconomic and geopolitical developments, the increasing depth and consistency of domestic capital is helping provide stability and continuity to investment activity,” Cushman & Wakefield said.Somy Thomas, Executive Managing Director - Capital Markets, Cushman & Wakefield, said domestic capital had been particularly active in the office segment and the momentum could strengthen further.“At the same time, the consistent performance of REITs has reinforced investor confidence in income-generating real estate, while relatively muted returns in equity markets have prompted a rebalancing of capital towards more stable, yield-driven assets,” Thomas said.Among cities, Delhi-NCR attracted 28 per cent of total quarterly investments in Q1 2026, followed by Chennai with 17 per cent and Bengaluru with 14 per cent.Commenting on the trend, Sanjeevini Group founder and Chairman Umesh Gowda H A said Bengaluru’s share reflected the city’s strong fundamentals and appeal for long-term investors.“The continued inflow of domestic capital is helping sustain project pipelines, support new developments, and maintain pricing discipline even amid global uncertainties,” Gowda said.