Outlook 2026: Institutional real estate investments to sustain strong momentum at $5–7 bn annually, says report

Institutional investments in Indian real estate reached $4.3 billion in the first 9M of 2025, driven by steady activity across all three quarters, Colliers said

Institutional investments in India are expected to reach $5–7 billion annually in both 2025 and 2026, indicating steady momentum, according to a Colliers’ 2026 Global Investor Outlook report. Institutional investments in Indian real estate remained strong in the first nine months of 2025, reaching $4.3 billion, driven by steady activity across all three quarters, according to the report.

Institutional investments in India are projected to touch $5–7 billion annually in 2025 and 2026, reflecting steady momentum. In the first nine months of 2025 alone, investments reached $4.3 billion, supported by consistent activity across all three quarters, Colliers’ 2026 Global Investor Outlook report said. (Represnetational Image)(Unsplash )

Global capital is moving strongly into Asia Pacific (APAC), with fundraising for the region rising more than 130% since 2024, it said.

The study, based on a global survey of institutional investors, showed improving fundamentals, returning liquidity and more stable pricing expectations, all of which are boosting confidence for 2026 despite geopolitical and cost pressures.

“Driven by sustained investor confidence, the last quarter of the year is likely to see a pick-up in transaction closures, particularly in the Indian office and residential segments. Together, these two segments are likely to contribute nearly 60% of the year’s total investments, driven by sustained occupier activity and a healthy supply pipeline,” it said.

Colliers' report stated that equity markets are further enhancing liquidity and creating alternative investment opportunities through REITs and IPOs, which are fueling cross-border participation in Indian real estate. Overall, investors are actively evaluating and deploying capital across core and emerging asset classes, a trend likely to accelerate as institutional-grade stock deepens.

“Investments in India’s real estate sector have demonstrated remarkable resilience, underscoring the depth of the market and growing investor confidence. We anticipate annual investments of $5-7 billion each in 2025 and 2026, driven by a balanced interplay between foreign and domestic investors. Indian real estate continues to benefit from structural demand levers such as robust domestic economic growth, rising urbanisation, infrastructure augmentation, and rising consumption levels,” Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India, said.

“As investors increasingly align with India’s long-term growth story, both domestic and offshore capital are expected to gain further momentum in the coming quarters. Overall investment sentiment remains optimistic, with expanding foreign investor participation, particularly from the US and Asia-Pacific regions, reflecting India’s continued appeal as a high-potential, resilient real estate market,” he pointed out.

APAC trends: Investors rotate capital toward high-growth markets

Across the survey, approximately 64% of regional investors expect an economic growth boost next year, and nearly 60% are optimistic about liquidity and rental growth. Family offices and high-net-worth investors are becoming more active in markets such as Hong Kong and Australia, taking advantage of favourable pricing conditions, Colliers said.

Australia continues to attract strong international capital, supported by stable fundamentals and predictable policy frameworks. Sydney and Melbourne remain key hotspots, especially for residential and industrial and logistics assets, while retail and office segments are also gaining traction among global buyers, Colliers said.

Japan’s major cities, Tokyo and Osaka, remain the preferred destinations for cross-border investment. The office market remains most active, while multifamily demand is strengthened by steady urban migration. Colliers expects domestic investors to further lift volumes, particularly in core asset classes.

Industrial and logistics assets remain at the centre of investor attention across APAC, supported by e-commerce-led demand. Office markets in Australia, Japan, Singapore and South Korea are seeing renewed traction as rents stabilise. Retail is regaining confidence, with investors favouring high-street and neighbourhood formats as supply adjusts. Meanwhile, data centres continue to attract cross-border capital, and residential investment is expected to rise further in 2026, the report said.

“Building on the momentum of 2025, India’s real estate investment landscape is poised for a stronger 2026, underpinned by a robust demand across core assets and a deepening pipeline of institutional-grade supply. Among alternative assets, data centres are likely to see increased investment, driven by the rapid expansion of digital infrastructure and hyperscale demand. Cross-border capital will continue to remain a critical driver, as India consolidates its position as one of the emerging destinations for stable, long-term real estate investment in the APAC region,” Vimal Nadar, National Director and Head of Research, Colliers India, said.