India's institutional investment to stay stable; USD 1.9B in Q2 2026

Institutional investments in India's real estate rose 16% QoQ to USD 1.9 billion in Q2 2026, led by the office segment. Activity is expected to remain stable in H2 2026, supported by strong domestic capital flows, as per a new report.

India's institutional investment activity is expected to remain stable in the second half of the year, supported by strong macroeconomic fundamentals, infrastructure-led growth and sustained domestic capital flows, as per Cushman & Wakefield's Q2 2026 Capital Marketbeat report.

Investment Activity in H1 2026

The report noted that institutional investments in India's real estate sector rose 16 per cent quarter-on-quarter to USD 1.9 billion in Q2 2026, led by the office segment, which attracted nearly USD 1 billion and accounted for 51 per cent of total investments. At the same time, investment activity moderated 7 per cent year-on-year (YoY), although the market continued to see steady deployment, supported by strong participation from domestic investors and sustained demand for stable, income-generating assets.

"For the first half of 2026, institutional investments totalled USD 3.5 billion, marking a 6% increase over H1 2025," the report noted.

Domestic Capital Outpaces Foreign Investment

Domestic institutions increased deployment by 57 per cent in H1 2026 compared with H1 2025, while foreign institutions saw a 33 per cent decline during the same period, the report noted.

Fundraising and Sectoral Focus

The report further highlighted, total fundraising in Q2 2026 stood at USD 2 billion, rising 1.2 times year-on-year and 3.6 times quarter-on-quarter. Within this, office-focused funds and REITs accounted for 51 per cent of the funds raised, while multi-sector funds attracted the remaining 49 per cent.

Commercial office sale transactions stood at USD 463 million in Q2 2026, declining 19 per cent year-on-year and 11 per cent quarter-on-quarter, the report noted.

Stable Outlook for H2 2026

Overall, India's Institutional investment activity is expected to remain stable in H2 2026, driven by strong macroeconomic fundamentals and infrastructure-led growth.

"Domestic capital is expected to remain the primary driver of investment activity, while foreign investor participation is likely to improve gradually as global macroeconomic conditions stabilize," it noted. (ANI)

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