Office Sector Dominates Indian Real Estate Investments in H1 2026

The office sector led Indian real estate investments in the first half of 2026, accounting for 89% of private equity inflows. Despite a 23% overall decline, interest in ready office assets surged, driven by global economic shifts. Major investment hotspots included NCR and Pune, with international capital strategies evolving.

The office sector emerged as the dominant force in Indian real estate during the first half of 2026, claiming nearly 89% of all private equity investments. According to the 'Trends in Private Equity Investment in India: H1 2026' report by Knight Frank India, investments in this sector surged by 33% to USD 998 million, compared to USD 579 million in the first half of 2025.

This growth comes amid a broader 23% year-on-year decline in overall real estate investments, which totaled USD 1.13 billion, down from USD 1.47 billion in the previous year. The National Capital Region led with the highest office sector investments among major Indian cities, amounting to USD 363.8 million, followed by Pune at USD 308.8 million. Meanwhile, Chennai, Bangalore, and Mumbai recorded moderate to low investment figures.

The report highlights the growing preference for ready office assets, which made up 75% of the total office sector investments, reflecting a global capital shift amid rising interest rates and tighter financial conditions. Investors seek assets offering immediate returns and lower risks, as the evolving global investment landscape demands greater emphasis on liquidity and execution certainty.