Institutional Investments in Indian Real Estate Surge to New High in 2026

Institutional investments in Indian real estate soared by 70% year-on-year, reaching $2.9 billion in Q2 2026. Aided by domestic and foreign investor confidence, key cities like Chennai and Bengaluru led inflows. Major deals include Abu Dhabi's $675 million investment in Kotak and CPPIB's $440 million in CtrlS.

In a remarkable surge, institutional investments in Indian real estate climbed 70% year-on-year to hit $2.9 billion in the second quarter of 2026. The uptick, reported by Colliers, was driven by robust domestic and foreign investor participation, with Chennai and Bengaluru collectively attracting 27% of the inflows.

Domestic investments doubled, reaching $1.33 billion and making up 46% of the total, while foreign investments contributed $1.54 billion despite global trade uncertainties due to the West Asia crisis. Noteworthy transactions included Abu Dhabi Investment Authority’s (ADIA) impressive $675 million deal with Kotak Alternate Asset Managers' mixed-use properties.

Meanwhile, the Canada Pension Plan Investment Board committed $440 million in the alternatives segment with CtrlS. This influx marks a six-year high, fueled by growing domestic investor confidence and steady foreign capital. The office segment attracted the most investment at $1.9 billion, leading all sectors, while residential investments fell by 43% compared to last year.