India’s institutional real estate market recorded a strong performance during the first half of 2026, attracting $4.3 billion in investments across 54 transactions, marking a 23% year-on-year growth, according to a report by JLL. The latest figures highlight increasing confidence in India’s property sector despite continued global economic uncertainty.
A key highlight of the report is the unprecedented rise in domestic institutional participation. Indian investors contributed 64% of the total investment volume, the highest share ever recorded, with domestic capital reaching approximately $2.8 billion. This significant increase helped offset a decline in foreign institutional investments, which were impacted by inflationary pressures, currency volatility and geopolitical uncertainties.
The office segment emerged as the top-performing asset class, attracting nearly $2.3 billion, supported by robust demand from Global Capability Centres (GCCs), improving office occupancy and attractive rental yields. Bengaluru, Chennai and Delhi-NCR remained among the most active investment destinations. Investors also adopted a more diversified strategy, leading to a 40% decline in average deal size as capital was spread across a greater number of transactions.
Industry experts believe the growing role of domestic private equity funds and REITs reflects the maturing nature of India’s real estate investment ecosystem. As global economic conditions stabilize, foreign capital is expected to return, creating a stronger and more balanced investment environment for India’s rapidly expanding real estate market.
