New Delhi: Institutional investments in India's real estate sector rose 58 per cent to a record USD 4.1 billion during the January-June period on better inflows from domestic and global investors, according to Vestian.
Fund inflows stood at USD 2.6 billion in the year-ago period.
In the April-June quarter, institutional investments in the real estate sector grew 49 per cent to USD 2.7 billion.
Cumulative investments reached USD 4.1 billion in H1 2026, the highest first-half inflow recorded since the Covid-19 pandemic, US-based real estate consultant Vestian said in its latest report.
Vestian CEO Shrinivas Rao said, "India's real estate sector attracted significant institutional investments during the second quarter of 2026, mainly driven by a robust domestic capital deployment and a revival in foreign investor participation."
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While commercial assets continue to attract the lion's share of investments on the back of sustained GCC (global capability centre) expansion, increased diversification across asset classes reflects growing investor confidence in the broader real estate ecosystem, he added.
"As geopolitical and economic uncertainties gradually ease further, investment activity is expected to remain buoyant, reinforcing India's position as a preferred global real estate investment destination," Rao said.
As per the data, institutional investments in the realty sector stood at USD 1.4 billion in the first half of 2020. The inflow surged to USD 3.3 billion in H1, 2021 and USD 4.1 billion in H1, 2022.
The inflow declined in H1, 2023 to USD 2.8 billion, but it rose to USD 3.7 billion in the first six months of 2024 calendar year.
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On the investments trend, Ankur Jalan, CEO of Golden Growth Fund (GGF), said, "Despite the geopolitical tension, the rise in India's institutional real estate investment reflects the strong fundamentals of the sector. The strong participation of domestic investors signals conviction in India's long-term economic fundamentals, regulatory transparency, and the resilience of income-generating real estate assets."
The GGF is a category II Real Estate focussed Alternative Investment Fund (AIF).
