India’s real estate investment market sustained exceptional momentum into 2026, with transaction volumes in Q1 CY2026 reaching USD 1.7 billion, up 37 per cent year‑on‑year, a report said on Monday.
The report from JLL said the quarter saw a structural shift toward core asset acquisitions, which surged 178 per cent to USD 1.03 billion.
The trend has accelerated into Q2, with core asset deals already totalling USD 1.48 billion, signalling sustained confidence in stable, income-generating properties.
It reflects a fundamental shift toward stable, income-generating properties, while the office sector’s dominance underscores strong operational fundamentals, said Lata Pillai, Senior Managing Director & Head of Capital Markets, JLL India.
“Deal momentum remains strong as cross-border investors successfully close transactions. India’s structural evolution positions us well to sustain this growth trajectory through 2026,” Pillai said, adding that India’s investment market continues to demonstrate remarkable resilience amid global headwinds.
The real estate sector achieved exceptional growth during 2024 and 2025, which emerged as record-breaking years for institutional capital inflows. Collectively, these two years saw institutional capital flow of USD 19.4 billion, marking a historic milestone for the industry.
The Indian real estate investment market has experienced a pivotal shift, as domestic institutional investors secured a dominant 52 per cent market share in 2025. This milestone represents the first instance of domestic capital leading the sector since 2014, marking a decisive departure from the 2015-2024 decade when foreign institutional investors-maintained market dominance.
Domestic resilience has been instrumental in offsetting reduced cross-border capital flows, as foreign institutional investors adopted a more cautious stance amid persistent geopolitical risks, the report noted.
Local institutional investors comprised 72 per cent of total investment volume in Q12026.
Indian REITs and Infrastructure Investment Trusts (InvITs), emerged as pivotal drivers of the domestic capital surge, collectively deploying USD 2.8 billion, or 47 per cent of total domestic institutional capital.
Indian private equity players complemented this momentum, contributing 42 per cent share of overall domestic capital deployment.
India’s real estate investment market is poised for continued momentum, underpinned by robust economic fundamentals, expanding infrastructure networks, and growing recognition as a stable destination within emerging market portfolios, the report forecasted.
