New Delhi, April 2 (NationPress) The Indian real estate industry saw a remarkable institutional investment of $1.6 billion during the first quarter of 2026, marking a 25% increase compared to the same period last year. This boost is primarily attributed to a significant influx of domestic capital, as reported on Thursday.

According to insights from Colliers, local investors led the investment wave, contributing $1.2 billion—a staggering 57% rise year-on-year—thus representing three-quarters of the overall inflow. This indicates a notable shift from the historical domestic share of 20-50% observed over the past four to five years.

Conversely, foreign investments dipped to $0.4 billion, reflecting a 23% annual decline as global investors took a more cautious approach amid trade, crude, and commodity market uncertainties.

The report further revealed that office assets remained the most attractive category, drawing in $0.8 billion—about half of the total quarterly investments and nearly double the figures from Q1 2025.

Additionally, domestic investors were responsible for more than 90% of office-segment inflows, with their investments increasing more than threefold on a year-over-year basis.

Geographically, the Delhi NCR and Bengaluru regions accounted for 46% of total investments, with Delhi NCR leading at $0.4 billion and Bengaluru following closely with $0.3 billion. Both markets were primarily bolstered by significant office transactions involving operational assets.

Multi-city investments constituted nearly one-third of the quarterly inflows, amounting to close to $0.5 billion.

The residential sector garnered $0.3 billion, reflecting a 7% annual growth and making up one-fifth of the total quarterly investments.

Meanwhile, the hospitality, alternative, and retail sectors collectively attracted over 20% of total investments, with foreign capital comprising 70% of the total investments across these asset classes.

Despite a sequential decrease from Q4 2025, the overall inflows in Q1 2026 were still 64% higher than the average first-quarter volumes recorded since 2020.

"Institutional investments in India's real estate sector continue to show resilience, fueled by robust domestic demand across various asset classes," stated Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India.

He further noted that while global investors may remain cautious in the near future, India's favorable demographics and consumption-driven economy will likely maintain its strong position in the broader Asia-Pacific region.