Foreign Capital Returns as India Real Estate Investments Stay Resilient in Q3 2026
India’s economy continued to demonstrate resilience in in Q1 FY2026-27 (April–June), supported by strong GDP growth despite rising inflationary pressures and global uncertainties. While the RBI initiated a gradual policy tightening cycle with a 25 bps rate hike, borrowing costs remain significantly below 2024 levels, providing continued support to real estate investment activity.
Institutional real estate investments reached USD 2.1 Bn in Q3 2026, taking 9M 2026 investments to USD 5.5 Bn, up 11% y-o-y. Foreign investors returned strongly during the quarter, accounting for 68% of capital deployment. Data centres emerged as the preferred investment asset class with a 52% share of inflows, followed by office and hospitality assets. Multi-city projects attracted the majority of investments, while Mumbai and Delhi NCR remained key investment destinations.
Fundraising activity remained healthy, supported by office-focused funds, REITs and alternative investment platforms. Strong leasing momentum, expanding REIT portfolios and growing demand across commercial real estate sectors continue to support a positive outlook for India’s investment market.
