Domestic investors led the market with $2.6 billion in investments, accounting for 57 per cent of total inflows, while foreign investments rose 24 per cent YoY to $1.9 billion.

“Domestic investors have consistently contributed up to 60 per cent of institutional investments over the past few quarters, while foreign investors are becoming increasingly selective and expanding their focus beyond traditional real estate assets,” said Badal Yagnik, CEO and Managing Director, Colliers India.

Office assets remained the largest investment destination during H1 2026, with domestic investors driving most of the investments in operational office properties.

Mixed-use and alternative assets attracted around $0.8 billion each during the first half of the year and contributed nearly one-fifth of total investments individually.

In addition, the hospitality segment recorded investments of $0.3 billion, more than three times higher than a year ago.

In contrast, institutional investments in the residential segment declined 43 per cent YoY to $0.5 billion as investors remained cautious amid rising costs and moderating housing sales.

Region-wise, Chennai and Bengaluru together attracted around $1.2 billion, accounting for about 27 per cent of institutional investments during H1 2026, the report said.

Multi-city transactions represented 46 per cent of the total investments, while Tier II and Tier III cities witnessed notable capital deployment across hospitality, industrial and residential projects, it added.