Indian Real Estate Investments Gain Momentum in Q2 2026
India's economy remained resilient through FY2025-26, with GDP growth of 7.7% despite rising inflation and global uncertainties. Borrowing costs continued to remain supportive, benefiting real estate investment activity.
Institutional real estate investments reached USD 1.9 Bn in Q2 2026, taking H1 2026 investments to USD 3.5 Bn, up 6% y-o-y. Domestic investors continued to anchor market activity, while office assets remained the preferred investment class, followed by data centres and mixed-use developments. Multi-city projects attracted the largest share of capital, with Bengaluru and Chennai emerging as key investment destinations.
Fundraising momentum strengthened during the quarter, supported by REITs and office-focused funds. Strong leasing activity, stable occupancies and growing institutional participation continue to support a positive outlook for India's commercial real estate market.