Mumbai, Jan 28 (NationPress) Global institutional investors are projected to channel $144 billion into commercial real estate by 2026, indicating a notable recovery in investment activity. India is increasingly recognized as a significant destination for global capital seeking scale, income stability, and long-term growth, according to a recent report.

Knight Frank’s latest ‘Active Capital Survey’ highlights that 87 percent of investors (by AUM) plan to enhance their direct commercial real estate investments in 2026, while 62 percent anticipate being net buyers, revealing a strong global acquisition interest.

This resurgence is primarily driven by a renewed emphasis on Core and Core-plus strategies, with $37 billion of anticipated global investment targeting Core assets.

“While global capital is re-entering the market, it exhibits a more disciplined approach compared to earlier cycles. India is increasingly perceived as a defensive growth market, backed by robust occupier demand, improved asset quality, and enduring structural drivers,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.

This transition aligns closely with the evolution of India’s commercial real estate sector, especially in Grade A office assets across major urban centers like Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune, and Chennai.

Globally, the office sector has re-emerged as the most attractive asset class, with 69 percent of investors planning allocations in 2026.

Nonetheless, investors are highly selective, favoring well-located, ESG-compliant assets that align with contemporary workplace needs, while steering clear of properties that may face long-term obsolescence.

This trend mirrors the situation in India, where leasing momentum is largely propelled by Global Capability Centres (GCCs), technology companies, and domestic businesses, which together account for approximately 75 percent of the market, thereby bolstering confidence in high-quality office properties.

Beyond office spaces, living sectors are the second most sought-after globally, with 65 percent of investors planning allocations, driven by favorable demographic trends and stable income prospects.

“Although institutional living sectors such as rental housing and student accommodation are still in their infancy in India, they present a significant medium- to long-term opportunity given the rapid urbanization and the youthful population,” the report noted.

Retail investment is also regaining attention globally, with 56 percent of investors planning allocations, indicating a stabilization and opportunities within dominant, experience-led shopping centers.

Operational real estate sectors, including data centers, infrastructure, and healthcare, are gaining traction as investors seek exposure to long-term structural trends.

In India, rising digital adoption, increasing healthcare demands, and sustained public infrastructure investments are generating growing interest in these segments.