The Indian real estate sector recorded the highest first-quarter inflow of institutional investments since 2022, valued at $1.4 billion in January-March 2026, a report showed on Wednesday. 

Despite registering a quarterly decline of 62 per cent due to an exceptionally high base in the preceding quarter, investments surged by 74 per cent over the same period a year earlier, according to a report by Vestian. 

This highlights strong investor confidence in India’s real estate sector, even as global headwinds continue to intensify.

Driven by strong demand from GCCs, commercial assets dominated investment activity in Q1 2026 with 80 per cent share, rising from 38 per cent a year earlier. 

“With a sharp uptick in domestic investments, India’s real estate sector continues to demonstrate resilience in the face of rising geopolitical tensions and macroeconomic headwinds,” said Shrinivas Rao, FRICS, CEO, Vestian. 

“As foreign participation moderates, domestic capital is sustaining the market momentum, while GCC-led demand continues to bolster confidence in commercial assets—reinforcing India’s appeal as a long-term investment destination,” he added.

In value terms, the segment attracted over $1.1 billion in investments, registering a sharp 266 per cent year-on-year increase, despite a 51 per cent decline on a quarterly basis, said the report.

On the other hand, investments in residential assets declined by 53 per cent quarter-on-quarter and 59 per cent year-on-year to $0.2 billion in Q1 2026. 

Despite the decline in absolute terms, the share of investments in residential assets rose marginally to 15 per cent in Q1 2026 from 12 per cent in the previous quarter.

As domestic investors emerge as the primary drivers of growth in an increasingly volatile global landscape, the share of domestic investments rose significantly from 22 per cent in the previous quarter to 72 per cent in Q1 2026.