The real estate sector has witnessed a record surge in the capital inflows in the first quarter of 2026, with the investments rising 72% year-on-year to $5.1 billion.
As per CBRE’s latest market monitor report, these inflows, the highest in any quarter ever, were primarily led by developers, closely followed by Real Estate Investment Trusts (REITs).
The period also witnessed a significant 53% quarter-on-quarter (Q-o-Q) investment surge from $3.3 billion in Q4 2025, reflecting a sustained institutional investor confidence in the fundamentals of the country’s real estate sector, it said.
Bengaluru, Mumbai, and Delhi-NCR cumulatively accounted for around 65% of the total investment share. Notably, capital from Singapore and Canada comprised ~72% and ~27%, respectively, of total foreign inflows.
During Q1 2026, the investment momentum was mainly led by substantial inflows into built-up office assets and continued activity in land/development site acquisitions, which together commanded more than 90% of the overall equity investment flows.
The report highlighted that the developers constituted 42% of the total capital inflows, closely followed by REITs at 40%.
Investments by REITs surpassed $2 billion, reflecting a multi-fold increase from the previous quarter and representing a substantial share of the total investment pie.
The report also outlined that a significant portion of this capital was directed towards land acquisitions.
Over 73% of the funds dedicated to site acquisitions were deployed for mixed-use and residential projects, with the rest committed to office, warehousing, and hospitality developments.
The investment activity in Q1 2026 was largely driven by domestic investors, who accounted for 96% of total inflows.
Developers led the market with a 42% share while REITs followed closely at 40%, with investments crossing $2 billion.