India’s Institutional Real Estate Investments Rise 23% to $4.34 Billion in H1 2026: JLL

India’s institutional real estate market continued its growth momentum during the first half of 2026, recording total investments of $4.34 billion, a 23% increase compared to the corresponding period last year, according to JLL. The investment activity was spread across 54 transactions, making it the highest half-year deal count ever recorded in the country’s commercial real estate sector.

The report highlights a major shift in the investment landscape, with domestic institutional investors emerging as the dominant force. Domestic capital contributed $2.8 billion during the January-June 2026 period, accounting for a record 64% of total institutional investments. This represents an impressive 165% year-on-year increase, reflecting growing confidence among Indian investors despite continued uncertainty in global financial markets.

Foreign institutional investments, however, declined by 37% during the same period. JLL attributed the slowdown to global economic uncertainty, inflationary pressures, currency fluctuations and cautious investment sentiment across international markets. As a result, the average transaction size reduced by 40% to around $80 million from $133 million in the first half of 2025.

The office segment remained the largest investment destination, attracting $2.3 billion across 17 transactions and accounting for 54% of the total institutional investment volume. Domestic investors contributed nearly 89% of office sector investments, underlining their growing role in India’s commercial real estate market.

Other sectors also attracted investor interest. Data centres accounted for 17% of total investments, followed by the residential sector at 10%, warehousing at 9%, hotels at 5% and retail assets at 4%. Non-core assets collectively represented 57% of the overall investment volume.

Geographically, multi-city investments led with a 32% share. Bengaluru attracted 18% of the capital inflows, followed by Chennai at 16%, Delhi NCR at 12%, Pune at 9%, Mumbai Metropolitan Region at 6%, Tier II cities at 5%, while Hyderabad and Kolkata each accounted for 1%.

According to JLL, the strong participation of domestic investors indicates that India’s institutional real estate market is entering a more mature phase. If current momentum continues, total institutional investments could reach between $8.5 billion and $9 billion by the end of 2026, reinforcing India’s position as one of Asia’s most attractive real estate investment destinations.