Institutional real estate investments in India are entering an exciting phase. The latest Colliers 2026 Global Investor Outlook Report has revealed a powerful trend: India is expected to attract $5–7 billion in annual institutional investments in 2025 and 2026. This signals confidence, maturity, and long-term strength across core real estate categories, especially office, residential, and emerging asset classes.
To understand why this momentum is building and what it means for India’s real estate future, let’s dive deeper.
Institutional Investments Hit $4.3 Billion in First 9 Months of 2025
The report highlights a strong 2025 run already. Institutional investments touched $4.3 billion between January and September 2025, reflecting steady deal activity across all three quarters. Clearly, capital is flowing with intention and clarity.
Moreover, global investors are continuing to shift their focus toward India because the country offers:
- Transparent pricing
- Consistent occupier demand
- Rapid urbanisation
- Strong economic resilience
This combination positions India as one of APAC’s most attractive real estate destinations.
APAC Capital Flow Surges- India Becomes a Key Beneficiary
Interestingly, global capital moving into Asia-Pacific is rising sharply. Fundraising for APAC has jumped by more than 130% since 2024. Investors across continents are now actively rotating capital toward high-growth markets.
Countries like Australia, Japan, Singapore, and South Korea continue to draw large cross-border investments. Yet, India is standing out because its core markets offer both stability and long-term upside.
And as liquidity improves and pricing stabilises, investors are preparing for accelerated deployment in 2026.
Office & Residential Segments to Contribute Nearly 60% of Investments
The Colliers report notes an important trend: the office and residential segments are expected to contribute almost 60% of the total annual investments.
Why?
Because:
- Office leasing is growing consistently
- Global Capability Centres (GCCs) are expanding rapidly
- Residential demand is witnessing its strongest cycle in over a decade
- India’s millennial workforce continues to push housing demand higher
The combination of strong occupier activity and a healthy supply pipeline ensures both these segments stay highly investible.
Equity Markets & REITs Add Fuel to Cross-Border Participation
Another major growth driver is India’s vibrant equity market. Liquidity in equity markets has opened new doors for REITs and IPOs, which in turn encourage more international investors to participate.
Because of this financial depth, investors now have:
- More structured ways to deploy capital
- More diversified choices
- Higher transparency
- Greater confidence in long-term returns
As institutional-grade stock expands, the investment landscape becomes even more attractive.
Why Investors Believe India Is Entering a “Stronger 2026”
According to the report, institutional investors globally expect better growth and liquidity in 2026.
Key reasons include:
- Resilient macroeconomic fundamentals
- Strong domestic consumption
- Government-backed infrastructure development
- Rising digital and physical connectivity
- Urbanisation reaching new peaks
This confidence is not just about short-term gains. Investors see India as an evolving, future-ready market with depth and sustainability.
Alternative Assets: Data Centres Steal the Spotlight
While traditional segments remain solid, alternative assets are gaining unprecedented traction.
Among them, data centres are emerging as the star performer. With rapid digital transformation, cloud adoption, and hyperscale demand, India’s data centre capacity is set to explode in the coming years.
This asset class checks all the boxes:
- Long-term leases
- High entry barriers
- Institutional-grade operations
- Consistent rental growth
Naturally, cross-border funds are eyeing this segment with renewed interest.
What Experts Say: Strong Confidence for 2025–26
Industry leaders are aligned on India’s robust investment outlook.
Badal Yagnik, CEO and MD of Colliers India, states that India continues to benefit from “structural demand levers such as robust economic growth, urbanisation, infrastructure augmentation, and rising consumption levels.”
He adds that both domestic and foreign capital will continue to gain momentum because India’s market remains resilient and high-potential.
Vimal Nadar, National Director and Head of Research at Colliers India, reinforces that India is now one of the most attractive long-term investment destinations across APAC.
Expert Insight: Sanjeev Singh, MD, SKJ Landbase
“India’s real estate investment cycle is entering a long-term growth phase,” says Sanjeev Singh, Managing Director, SKJ Landbase.
He adds, “Institutional investors are looking beyond short-term volatility and are focusing on India’s fundamentals. With massive infrastructure upgrades, strong end-user demand, and deepening investor participation, 2026 will likely be one of the most transformative years for Indian real estate.”
Final Outlook: A Strong, Stable, and Opportunity-Rich Future
Given the current trends, the future of institutional investments in Indian real estate looks brighter than ever. There is strong confidence, steady capital, and a clear growth pipeline.
And as India continues to strengthen its position on the global map, the real estate sector is set to enjoy sustained momentum, deeper foreign participation, and wider opportunities for developers, investors, and homebuyers alike.
India isn’t just attracting global capital it’s shaping the next era of APAC real estate investment.
