Domestic investors drive Indian real estate inflows to record levels as local capital reached $3.5 billion between January and September 2026. According to the latest report from real estate services firm Colliers India, domestic capital accounted for 60% of total institutional inflows on Thursday. Consequently, total real estate investments touched $5.9 billion during the nine-month period, reflecting a 39% year-on-year growth.
Local capital anchors core asset growth across commercial corridors
Furthermore, domestic capital inflows surged 59% year-on-year across core asset classes. Local institutional investors allocated heavily toward operational office assets and developmental residential projects.
Additionally, office assets attracted $2.2 billion in total institutional funding, representing a 46% year-on-year rise. Meanwhile, domestic investors contributed more than 90% of total capital inflows within the office sector.
| Asset Class / Category | YTD 2025 Inflows (Million)∣YTD2026Inflows( Million) | YoY Growth (%) |
| Office Space | 1,482.7 | 2,169.3 |
| Mixed-Use Projects | 707.8 | 1,007.0 |
| Alternative Assets | 144.5 | 968.2 |
| Hospitality | 88.2 | 632.2 |
| Residential | 1,139.7 | 694.5 |
| Total Institutional Capital | 4,267.6 | 5,928.3 |
Foreign capital pivots toward hospitality and alternative assets
Meanwhile, foreign investments grew 17% year-on-year to reach approximately $2.4 billion. Overseas investors focused on alternative sectors, including data centers, life sciences, and hospitality projects.
Specifically, hospitality investments jumped seven-fold to $632 million, driven almost entirely by foreign capital commitments. Consequently, as domestic investors drive Indian real estate inflows across primary cities like Bengaluru and Delhi NCR, multi-city portfolio deals doubled to $2.9 billion.
