Economic Activity Surges; Real Estate Investments Hit Record High
India’s GDP grew by 8.2% in Q2-FY26, marking a six-quarter high, supported by strong construction and financial services growth. Inflation remained low at 1.3%, while RBI cut the repo rate in Dec-25 to 5.25%, boosting liquidity and growth outlook.
Institutional real estate investments reached USD 3.4 Bn in Q4-25, up 93% q-o-q, with office assets capturing 75% share. Bengaluru led with 52% quarterly inflows. Annual investments hit an all-time high of USD 8.4 Bn, up 18% y-o-y, driven by domestic institutions and REIT acquisitions, as depreciating INR and volatile capital flows remained a concern for foreign institutions
Fundraising totaled USD 2.1 Bn in Q4, supported by office-focused REITs. Lower rates, strong GCC‑led office demand, and robust Grade A supply—alongside infrastructure upgrades—position 2026 for sustained capital inflows, stable yields, and continued depth across office, residential, logistics, and emerging alternatives.
