Capital Inflows Into India’s Real Estate Sector Reach Record USD 8.5 Billion In First Half Of 2026: CBRE
New Delhi, July 16, 2026: India’s real estate sector recorded a historic high in equity capital inflows during the first half of 2026, securing USD 8.5 billion between January and June. According to the latest “India Market Monitor – Investments” report by real estate services and investments firm CBRE South Asia Pvt. Ltd., this milestone represents a 32% year-over-year growth compared to the USD 6.4 billion registered in the first half of 2025. The unprecedented investment surge was primarily driven by sustained transaction momentum in land and development site acquisitions alongside built-up office assets, CBRE South Asia said in a press release.
Industry leaders point to these record-breaking numbers as a testament to the robust health of the country’s property market despite macroeconomic shifts. “This momentum reflects the underlying resilience and depth of India’s real estate capital markets,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, the Middle East & Africa, CBRE. “Domestic investors have continued to demonstrate strong conviction in the sector’s long-term fundamentals, even as the broader environment remains dynamic. We expect this momentum to carry into the second half of the year, with select foreign capital expected to re-engage as global conditions stabilise.”
During the second quarter of 2026, spanning April to June, total equity capital inflows held steady at USD 3.4 billion, matching the investment volumes of the corresponding quarter in the previous year. Land and development sites, coupled with built-up office assets, remained the preferred choices for investors, collectively commanding approximately 94% of the overall quarterly inflows. Real estate developers led the capital infusion with a 34% share, closely followed by domestic institutional investors at 32%. Notably, institutional capital flows grew by a sharp 51% quarter-over-quarter, indicating a strong acceleration in institutional interest.
Geographically, the investment activity remained concentrated in major urban centers, with Bengaluru, Delhi-NCR, and Mumbai capturing a combined share of roughly 60% of the total inflows during the second quarter. Domestic players, led chiefly by developers, anchored the market by driving 92% of the quarterly investment volume, showcasing the extensive depth and self-sufficiency of local capital reserves in India. The remaining portion of the investment was contributed by global investors.
The report further revealed that more than 88% of the capital directed toward land and site acquisitions was earmarked for residential and office developments, while the remaining balance was committed to specialized sectors such as data centers, mixed-use projects, and industrial and logistics parks. Reinforcing this long-term optimism, developers and financial institutions established new investment and development platforms worth approximately USD 1.6 billion during the quarter, specifically targeting future residential and office pipelines.
Market experts expect this balanced participation of local and international capital to pave the way for steady expansion across asset classes. Gaurav Kumar, Managing Director & Co-Head, Capital Markets, India, CBRE, added, “India’s real estate investment landscape continues to demonstrate sustained growth with strong institutional investments in core assets and hectic activity in land transactions. Global investors and domestic players have been unanimous in their aggressive intent in expanding their real estate portfolios across all asset classes. We expect the market to sustain this momentum going forward on account of a sophisticated capital pool that is now deeply committed to the Indian Real Estate Market.”
Looking ahead to the second half of 2026, CBRE projects that the real estate sector will maintain its strong investment run. This projected growth is expected to be supported by consistent capital flows into both newly developed projects and built-up acquisitions. The ongoing demand for core built-up assets is anticipated to remain highly resilient, underpinned by steady investment activity from Real Estate Investment Trusts (REITs) and active participation from domestic institutional players, while persistent land acquisitions will continue to fuel fresh construction pipelines across the country.
