India's real estate investment soars 37% to USD 1.7 bn in Q1 2026

India's real estate investment market transaction volumes surged 37% YoY to USD 1.7 billion in Q1 2026. A JLL report notes a 178% spike in core asset investments, reflecting a shift towards stable, income-generating properties.

The real estate investment market in the country continued its strong momentum in 2026, with transaction volumes rising 37 per cent year-on-year to USD 1.7 billion in the January-March quarter, according to JLL, a global professional services firm in real estate investment management.

It highlighted that the growth came despite extended decision-making timelines due to global macroeconomic uncertainties, reflecting the resilience of India's real estate sector and its continued appeal to institutional investors.

It stated, "India's real estate investment market has sustained its exceptional momentum into 2026, with first quarter (January - March) transaction volumes reaching USD 1.7 billion"

Investor Preference Shifts to Core Assets

A key trend observed during the quarter was a sharp shift in investor preference towards core assets. Investments in core assets surged 178 per cent to USD 1.03 billion, indicating rising demand for stable, income-generating properties.

This trend has continued into the second quarter, with core asset deals already reaching USD 1.48 billion, signalling sustained investor confidence.

Lata Pillai, Senior Managing Director and Head of Capital Markets at JLL India, said the sector continues to show strong resilience despite global challenges. "India's investment market continues to demonstrate remarkable resilience amid global headwinds. The 178 per cent surge in core asset acquisitions reflects a fundamental shift toward stable, income-generating properties, while the office sector's dominance underscores strong operational fundamentals," she said.

Record Inflows and Domestic Capital's Rise

JLL noted that the real estate sector witnessed record-breaking institutional inflows during 2024 and 2025, with combined investments of USD 19.4 billion, marking the strongest performance period in India's real estate investment history.

The report said this shift reduces dependence on foreign capital and strengthens the sector's resilience amid global uncertainties.

Indian Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have played a key role, deploying USD 2.8 billion, which accounts for 47 per cent of total domestic institutional capital. Private equity players have also contributed significantly, with a 42 per cent share.

Positive Outlook for Coming Quarters

Looking ahead, JLL expects India's real estate investment market to maintain strong momentum, supported by robust economic fundamentals, expanding infrastructure, and increasing investor confidence. The growing role of domestic capital and a maturing REIT ecosystem are expected to help the sector navigate global volatility while sustaining growth in the coming quarters.

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