India's Institutional Real Estate Investments Rise 23% to ₹40,801 Crore in H1 2026: Office Segment Leads Growth

India's real estate sector maintained strong investment momentum during the first half of 2026 despite global geopolitical tensions, inflationary pressures, and currency volatility. According to JLL India, institutional investments rose 23% year-on-year to ₹40,801 crore (US$4.33 billion) during January-June 2026, marking the highest-ever first-half transaction count with 54 deals. The robust performance follows the record ₹98,942 crore (US$10.5 billion) invested in 2025, highlighting sustained investor confidence in India's property market.

Domestic Investors Drive Investment Activity

Domestic institutional investors emerged as the key growth driver, contributing ₹26,384 crore (US$2.8 billion) or 64% of total investments during the period—the highest share recorded so far. Increased participation from domestic private equity funds and Real Estate Investment Trusts (REITs) helped offset weaker foreign capital inflows amid global economic uncertainty.

Although the average deal size declined to ₹754 crore from ₹1,253 crore in H1 2025, the higher number of transactions indicates broader investor participation and greater portfolio diversification across the market.

Office Assets Continue to Attract Capital

The office segment remained the preferred investment destination, attracting ₹21,673 crore (US$2.3 billion) across 17 transactions, accounting for 54% of total institutional investments.

Domestic investors contributed 89% of office-sector investments, supported by strong leasing activity, expansion of Global Capability Centres (GCCs), improving return-to-office trends, and attractive rental yields. Meanwhile, non-core assets represented 57% of overall investment activity, while Bengaluru and Chennai together accounted for 34% of total capital inflows.

Read more: Key Financial Changes From July 1, 2026: ITR Deadline, EPFO 3.0, Aadhaar Update, Passport Fee Hike & More.

Conclusion

India's real estate market continues to demonstrate resilience despite global headwinds. Strong domestic investor participation, healthy demand for office assets, and increasing transaction volumes underline the sector's long-term growth potential. With foreign capital expected to recover in the coming quarters, the investment outlook for India's real estate sector remains positive for the rest of 2026.

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