New Delhi, April 1 Institutional investment in the Indian real estate sector fell by 62 per cent during the January-March period to USD 1.41 billion from the previous quarter, due to negative sentiment caused by the conflict in West Asia, according to Vestian.
Investment in real estate stood at USD 3.73 billion in the October-December quarter of the 2025 calendar year.
However, real estate consultant Vestian said investments rose by 74 per cent from USD 0.81 billion in the year-ago period, highlighting 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, accounting for 80 per cent of the investment.
Investment in commercial assets fell to USD 1.12 billion in January-March from USD 2.28 billion in the preceding quarter. The inflow of funds jumped more than three times from USD 307.2 million in the January-March period last year.
Commercial assets include office, retail, co-working, and hospitality projects.
On the other hand, investments in residential assets declined by 53 per cent quarter-on-quarter and 59 per cent year-on-year to USD 205.9 million in Q1 2026.
Vestian CEO Shrinivas Rao said, "With a sharp increase in domestic investments, India's real estate sector continues to demonstrate resilience in the face of rising geopolitical tensions and macroeconomic headwinds."
"As foreign participation moderates, domestic capital is sustaining the market momentum, while demand driven by GCCs continues to bolster confidence in commercial assets – reinforcing India's appeal as a long-term investment destination," Rao added.
US-based Vestian is one of the leading real estate consultants globally. It also has a presence in the Indian market.