Unlike the previous quarter, institutional investments in India’s real estate sector witnessed broader geographic diversification in Q2 2026. Multi-city transactions accounted for nearly 60% of the total investment inflows, while the remaining 40% was distributed across India’s top seven cities. Among individual markets, Chennai attracted the largest share of investments at approximately 16%, followed by Bengaluru at 11%. This shift reflects investors’ growing preference for geographically diversified portfolios and underscores the expanding investment potential across India’s major metropolitan markets despite persistent global economic headwinds.

Source: Vestian Research

Robust Investments Amid Geopolitical Challenges

Institutional investments in India’s real estate sector surged to USD 2.7 Bn in Q2 2026, registering a two-fold increase over the previous quarter and 49% rise compared to the same period last year. This strong growth underscores continued investor confidence in the sector despite prevailing geopolitical and economic challenges. Moreover, cumulative investments reached USD 4.1 Bn in H1 2026, the highest first-half inflow recorded since the COVID-19 pandemic. Going forward, a gradual improvement in global economic and geopolitical conditions is expected to bolster foreign investor participation, while domestic investors are likely to further intensify capital deployment across asset classes.

Source: Vestian Research

Office Assets Led Investments on the back of Heightened Demand from GCCs

Commercial assets continued to dominate institutional investments in Q2 2026, accounting for 70% of the total inflows. Supported by robust occupier demand from Global Capability Centers (GCCs), the segment attracted approximately USD 1.9 Bn in investments, registering 67% quarterly and 72% yearly rise.

Investments in residential assets nearly doubled over the previous quarter, attracting USD 0.4 Bn. Despite the strong sequential rise in investment value, the share remained largely stable at 15%.

Diversified assets emerged as the fastest-growing category, with investment inflows surging 566% quarter-on-quarter to USD 0.37 Bn, primarily driven by a low base effect. In contrast, investment activity in the industrial and warehousing segment remained relatively subdued, attracting USD 0.03 Bn during the quarter.

Note: Values depicted are in USD Mn, rounded to the nearest whole number

Commercial assets include office, retail, co-working, and hospitality projects.
Diversified assets include commercial, residential, and/or industrial & warehousing

Source: Vestian Research

Participation of Foreign Investors Increased as Global Uncertainty Subsided

Domestic investors accounted for the largest share of institutional investments in Q2 2026 at 58%, although their contribution declined from 72% in the previous quarter. In value terms, domestic investments reached USD 1.5 Bn, registering annual and quarterly growth of 363% and 53%, respectively.

Foreign investors contributed 38% to the total investments during the quarter, with inflows surpassing USD 1 Bn following a 454% quarter-on-quarter increase. Meanwhile, the share of co-investments declined to 4%, indicating a growing preference for independent capital deployment.

Shrinivas Rao, FRICS, CEO, Vestian said, “India’s real estate sector attracted significant institutional investments during the second quarter of 2026, mainly driven by robust domestic capital deployment and a revival in foreign investor participation. While commercial assets continue to attract the lion’s share of investments on the back of sustained GCC expansion, increased diversification across asset classes reflects growing investor confidence in the broader real estate ecosystem. As geopolitical and economic uncertainties gradually ease further, investment activity is expected to remain buoyant, reinforcing India’s position as a preferred global real estate investment destination.”

Note: Values depicted are in USD Mn, rounded to the nearest whole number

Co-investment refers to joint funding by foreign and domestic investors

Source: Vestian Research

A seasoned real estate professional with over 28 years of experience across real estate, banking and customer-centric businesses, Harinder Dhillon brings extensive expertise in sales leadership, revenue generation, channel management, customer acquisition and strategic business development.

In his new role, he will be responsible for driving sales growth, strengthening market positioning, enhancing customer engagement and leading go-to-market strategies for Adani Realty’s expanding portfolio in Delhi-NCR. He will also play a pivotal role in accelerating the company’s growth ambitions in one of India’s most competitive and dynamic real estate markets.

Prior to joining Adani Realty, Harinder Dhillon held leadership positions with some of the most prominent organisations in the industry, including DLF, BPTP, ATS Infrastructure, Damac Properties, Raheja Developers, and ICICI Bank. Throughout his career, he has successfully led high-performing sales teams, launched marquee residential developments, landmark commercial and retail developments, and integrated township developments, while delivering strong business outcomes across multiple markets.

Commenting on his appointment, Harinder Dhillon, Head – Sales & Marketing, Delhi-NCR, Adani Realty, said:

“I am delighted to join Adani Realty at a time when the company is witnessing significant growth and expanding its footprint across key markets. Delhi-NCR continues to be one of the most vibrant real estate destinations in the country, driven by strong end-user demand, infrastructure development and evolving consumer aspirations. I look forward to contributing towards Adani Realty’s vision by delivering exceptional customer experiences, strengthening market presence and driving sustainable business growth across Gurugram and Noida.”

Adani Realty has emerged as one of India’s leading real estate developers, with a growing portfolio spanning residential, commercial and integrated township developments across major cities. The appointment further reinforces the company’s commitment to building a strong leadership team as it continues to expand its presence in the Delhi-NCR market.

Bengaluru, May 15, 2026: Urban Vault, one of India’s leading managed and flexible workspace providers, expects its fast-growing design, fit-out, and facility management business for offices to generate approximately ₹50 crore in revenue in FY 2026–27, driven by increasing demand from large enterprises seeking turnkey office solutions.

The company has witnessed a growing trend among corporates and multinational companies to outsource office design, interior fit-outs, furnishing, and ongoing facility management rather than making large upfront capital investments in creating and operating workspaces.

Under this model, enterprises partner with specialized companies such as Urban Vault to design and build ready-to-move-in offices and manage day-to-day operations, allowing them to focus on their core business while reducing execution timelines and operational complexity.

Recently, Urban Vault completed the design and furnishing of a large office for a leading IT services company in Mumbai. The company delivered the fully operational workspace within just 90 days, showcasing its ability to execute large-scale projects within tight timelines.

In addition to designing and furnishing the office, Urban Vault has also secured a five-year facility management contract for the same client, under which it will oversee maintenance and operational services.

The agreement has generated an upfront revenue of approximately ₹25 crore for fit-out and furnishing, along with recurring revenue of around ₹15 crore annually over the next five years, taking the total contract value to nearly ₹100 crore.

Speaking on the development, Mr. Amal Mishra, Co-founder and CEO of Urban Vault, said: “We are seeing strong interest from enterprises that want fully managed office solutions without the burden of investing time and capital in office construction and ongoing maintenance. Our ability to design, deliver, and manage large offices within a short timeframe gives clients a faster and more efficient route to occupancy. We believe this business segment will become a significant growth driver for Urban Vault over the coming years.”

Traditionally known for its managed office and flexible workspace solutions, Urban Vault has expanded its offerings to include end-to-end workplace solutions covering strategy, design, fit-outs, furnishing, and facility management.

The company believes this integrated model addresses a growing need among enterprises for speed, flexibility, and operational efficiency in workplace creation.

With the successful execution of large enterprise mandates and increasing client interest, Urban Vault expects the fit-out and facility management vertical to emerge as an important contributor to its overall business and a key component of its long-term growth strategy.

Over the years, UrbanVault has expanded its national portfolio to over 2.80 million sq. ft., managing 70,000+ seats across 80+ locations in Bengaluru, Pune, Gurugram, and other major cities. The company continues to demonstrate strong performance, with an expected turnover of over ₹200 crore in FY2025-26, 70%+ year-on-year growth, and 18% PAT.