India’s institutional real estate market has recorded impressive growth in the first half of 2026, with investments rising 23% year-on-year to $4.3 billion, according to a report by JLL. The increase highlights growing investor confidence in the country’s property sector despite ongoing global economic uncertainties.
A major driver of this growth has been domestic institutional investors, who contributed $2.8 billion, accounting for a record 64% of total capital inflows. This represents a remarkable 165% increase compared to the same period last year, indicating the increasing maturity of India’s domestic investment ecosystem. Meanwhile, foreign investments declined by 37% due to global inflation, currency volatility and geopolitical concerns.
The office segment emerged as the top-performing asset class, attracting 54% of total institutional investments as businesses continued expanding operations across major cities. Although the average deal size fell to $80 million, the market witnessed a higher number of transactions, reflecting investors’ preference for diversified portfolios.
Industry experts believe the strong participation of domestic private equity funds and REITs has reduced India’s dependence on overseas capital. As global economic conditions stabilize, foreign institutional investments are expected to recover, creating a more balanced and resilient real estate investment landscape in the coming months.
