Institutional inflows into real estate drop 62% to $1.41 billion in Q1: Report

Institutional investment in India’s real estate sector declined 62 per cent sequentially to $1.41 billion in the January-March quarter, amid negative sentiment triggered by the West Asia conflict, PTI reported.

Data from real estate consultant Vestian showed that investments had stood at $3.73 billion in the October-December quarter of 2025.However, inflows rose 74 per cent compared to $0.81 billion in the year-ago period, indicating sustained investor confidence despite global uncertainties.Commercial assets continued to dominate investment activity, accounting for 80 per cent of total inflows in Q1 2026, driven by strong demand from global capability centres (GCCs).Investment in commercial real estate — which includes office, retail, co-working and hospitality projects — fell to $1.12 billion in the March quarter from $2.28 billion in the preceding quarter. On a year-on-year basis, however, inflows surged more than three times from $307.2 million.In contrast, investments in residential assets declined sharply by 53 per cent quarter-on-quarter and 59 per cent year-on-year to $205.9 million during the period.

“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 Vestian CEO Shrinivas Rao.“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.Vestian, a US-based real estate consultancy firm, operates globally and has a significant presence in the Indian market.