India real estate attracted $2.1 billion in institutional investment in the third quarter of 2026, up 12% from the previous quarter and 20% from a year earlier, according to Cushman & Wakefield. Foreign investors led quarterly inflows for the first time after four quarters of domestic dominance.

Key Takeaways

  • Foreign investors deployed $1.4 billion, or 68% of the quarterly total.
  • Data centres attracted 52% of institutional investment, the largest share among asset classes.

India real estate draws more foreign capital

Foreign investment rose 64% from the second quarter and 134% from a year earlier. Domestic institutions contributed $0.7 billion, or 32% of the total, after their investment fell 34% quarter on quarter and 39% year on year.

The decline in domestic investment was primarily attributed to high levels of deployment in the comparable earlier periods.

For the first nine months of 2026, institutional investment totalled $5.5 billion, up 11% from a year earlier. Domestic investors still held a slight lead over that longer period, accounting for 52% of volumes, while foreign investors represented 48%.

Data centres lead investment allocations

Data centres received just over half of quarterly institutional investment. Hospitality attracted 15%, and offices accounted for 9%.

Private equity funds were the route for 88% of quarterly activity, while real estate investment trusts accounted for the remaining 12%.

Multi-city transactions dominate

Multi-city transactions made up 76% of quarterly activity. Mumbai received 9% and Delhi-NCR 6% in direct allocations.

Somy Thomas, executive managing director of capital markets at Cushman & Wakefield, said investors remained selective but were allocating capital to opportunities backed by scale and long-term growth potential.

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