Institutional real estate investment in India rises to 1.9 billion in Q2 2026

Strong domestic participation and increased investment in data centres helped institutional investment in Indian real estate grow 16% quarter-on-quarter during April–June 2026, according to Cushman & Wakefield.

India's real estate sector attracted US$1.9 billion in institutional investment during the second quarter of 2026, up 16% from the previous quarter, according to a report by real estate services firm Cushman & Wakefield. The consultancy attributed the growth to stronger domestic participation and sustained investment in commercial real estate and digital infrastructure.

According to the report, domestic investors played a larger role during the April–June quarter, while office spaces, industrial and logistics parks, and data centres continued to attract institutional capital.

Data centres emerged as one of the quarter's standout asset classes, reflecting rising demand for cloud computing, artificial intelligence and digital services. Cushman & Wakefield said investors increasingly view digital infrastructure as a long-term opportunity alongside traditional commercial real estate assets.

Office developments remained a major destination for institutional investment, supported by continued leasing activity in key business hubs. Industrial and logistics assets also attracted capital amid ongoing expansion in manufacturing, warehousing and supply chain infrastructure.

Institutional investment provides developers with an additional source of funding for commercial and mixed-use projects while improving liquidity in the sector. The pace at which these investments translate into new developments, however, will depend on project pipelines, financing conditions and market demand.

Despite the stronger quarter, Cushman & Wakefield noted that investment activity will continue to be influenced by global interest rates, geopolitical developments and broader capital market conditions. Even so, the latest figures indicate that institutional investors remain active in India's commercial real estate sector.

Whether this momentum continues through the second half of 2026 will depend on commercial leasing activity, domestic economic conditions and the availability of investment capital.

Sources The Economic Times. India's real estate investment thrives: $1.9 billion in Q2 2026 driven by domestic capital and data centres. https://m.economictimes.com/industry/services/property-/-construction/indias-real-estate-investment-thrives-19-billion-in-q2-2026-driven-by-domestic-capital-and-data-centres/articleshow/132530373.cms Cushman & Wakefield India. India Capital Markets Beat – Q2 2026 / Investment Market Update. https://www.cushmanwakefield.com/en/india/insights