Blitz Bureau
NEW DELHI: India’s institutional real estate market showed remarkable resilience in H1 2026 and drew nearly $4.3 billion across a record 54 transactions, up 23 per cent on a YoY basis, a report said on June 25.
The report from commercial real estate services firm JLL said domestic institutional capital accounted for 64 per cent of total flows — the highest share on record.
They contributed about $2.8 billion and offset a 37 per cent fall in foreign institutional investment, it added.
“This growth, driven by domestic PE players and REITs, signals the early stages of maturation of India’s domestic investment landscape and substantially reduced vulnerability to external shocks,” said Lata Pillai, Senior Managing Director & Head of Capital Markets, India, JLL.
As geopolitical conditions stabilise, Pillai forecasted foreign investors to increase their capital deployment in India’s real estate market.
The synergy between strengthening the domestic institutional base and renewed international participation will drive significantly higher institutional capital flows, establishing a more balanced and resilient investment ecosystem.
After a subdued H1 2025, the overall market demonstrated exceptional resilience with a powerful H2 2025 rebound that delivered a record-breaking $10.5 billion in institutional investments for CY 2025.
Average deal sizes contracted by 40 per cent to $80 million in H1 2026 as investors fragmented capital across more, smaller transactions to spread risk.
Domestic institutional capital contributed $2.8 billion in H1 2026, representing a remarkable 165 per cent year-on-year increase.
