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

Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd., said, “The US-Iran peace deal comes as a major relief for both the global and domestic economies. India’s housing sector, in particular, stands to benefit, as the development is expected to significantly boost sentiment among prospective homebuyers. With the reopening of the Strait of Hormuz, inflationary pressures are likely to ease, giving the RBI greater flexibility to maintain the status quo on policy rates for an extended period. This, in turn, will provide a boost to the overall economy and encourage first-time homebuyers to enter the market with greater confidence.”

Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited, said, “The US-Iran peace agreement is a positive development for the global economy as it is expected to ease inflationary pressures and improve overall market sentiment. India stands to benefit from the stabilization of energy and commodity prices, which can support economic growth and strengthen consumer confidence. The housing sector is also likely to witness a positive ripple effect, with improved affordability and a more stable economic environment encouraging homebuyers and investors alike. We expect this development to boost confidence among prospective homebuyers, particularly fence-sitters, enabling them to make purchase decisions with greater certainty and conviction in the months ahead.”

Overall, the housing industry believes that the easing of geopolitical tensions between the US and Iran could create a more stable macroeconomic environment, benefiting key sectors of the economy, including real estate. Lower inflationary risks, stable interest rates and improved consumer confidence are expected to support housing demand across segments, particularly among end-users. As economic visibility improves, the sector may witness stronger buyer participation and sustained momentum in residential sales in the coming quarters.

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.

Nearly 96,000 homes sold across top 8 cities; Market shifts from post-pandemic exuberance to demand-driven quality growth

National, May 16, 2026 – India’s residential real estate market has successfully transitioned into a structurally mature, demand-anchored growth phase, according to the Real INSIGHT – Residential Q1 2026 report released by PropTiger (part of Aurum PropTech Limited).

Market Snapshot: Stability Over Volume

Q1 2026 recorded 93,065 new unit launches and 95,973 unit sales across the top eight cities, with supply rising +1.1% sequentially and sales improving +1.0% QoQ. Year-on-year, supply remained virtually flat at -0.1% while sales moderated -2.2%, reflecting healthy normalisation rather than structural weakness.

The weighted average price reached a historic ₹10,050/sq ft – the first crossing of the five-digit benchmark, signalling that value creation now drives market health rather than transaction volume.

Prakash Tejwani, CEO, PropTiger, stated “The Indian residential market has transitioned into a structurally more disciplined phase. Growth today is increasingly being driven by demand quality, inventory discipline, and buyer confidence rather than speculative expansion.”

Bengaluru’s Dominant Performance

Bengaluru emerged as Q1 2026’s standout performer, recording 15,603 unit sales – up +33% year-on-year and +12% sequentially. The city also maintained near-parity between new supply (15,806 units) and sales absorption, indicating a well-balanced market.

The GCC and startup employment engine continues to prove more durable than conventional IT hiring cycles, providing Bengaluru with a structurally differentiated demand base.

MMR Anchors Market Despite Normalisation

Mumbai Metropolitan Region (MMR) reinforced its position as India’s largest residential market by volume and value, with 26,116 sales units in Q1 2026. While YoY comparisons remain negative (-14.9%), this reflects base-effect normalisation against an exceptional 2025, not a loss of demand momentum.

Broader City Performance

• Chennai: Delivered strong recovery with 6,841 units sold, up +43.3% YoY, driven by absorption of existing inventory.
• Hyderabad: Recorded 13,297 units sold, up +24.9% YoY, confirming strong structural demand trajectory.
• Delhi NCR: Posted +11.4% YoY sales growth and +17.6% YoY price appreciation.
• Pune: Achieved +4.0% QoQ sales recovery with the highest QoQ price growth at 9%.
• Kolkata & Ahmedabad: Facing temporary headwinds from election cycles and demand normalisation respectively.

Market Health Indicators

All eight major cities registered positive year-on-year price appreciation; unsold inventory levels remained broadly balanced, with new supply additions closely aligned with sales absorption, preventing meaningful build-up of unsold stock.

A disproportionate share of new launches in Q1 2026 – particularly in Mumbai MMR, Bengaluru, and Delhi NCR – remained concentrated in the premium and upper mid-income segments driving the average property prices higher.

Conclusion: A Market Entering Maturity

Q1 2026 marks a decisive inflection point in India’s residential real estate cycle. The market has successfully transitioned from post-pandemic exuberance (2024–25) to structurally sustainable, demand-anchored growth (2026+).

The Q2 2026 Outlook is Constructive:

• Expect steady sequential growth (+2–4% QoQ) across most major metros
• Sustained YoY price appreciation (+4–8% across metros) driven by limited mid-segment supply
• Infrastructure completions unlocking new micro-markets, particularly benefiting Bengaluru, Chennai, Hyderabad, and NCR
• Developer discipline maintaining inventory balance and preventing oversupply risk

·       Q4 2025 sales lowest quarterly sales since Q2 2023

·       Annual sales lowest since 2022 and supply lowest since 2021

National | January 22, 2026 – India’s residential real estate market entered a phase of measured normalisation in calendar year 2025, with housing demand softening gradually but remaining structurally resilient, according to Real Insight – Residential CY 2025, the annual housing market report released by PropTiger.com.

According to the report, across the top eight cities, all-India residential sales declined by 12% to 3,86,365 units in 2025 as compared to 4,36,992 units in 2024. This is the lowest annual sales since 2022.

In Q4 2025, sales contracted 10% YoY and 0.5% QoQ to 95,049 units. This is the lowest quarterly sales since Q2 2023 (80,250 units). During 2025, quarterly sales moderated from 98,095 units in Q1 2025 to 95,049 units in Q4 2025, reflecting demand re-timing rather than contraction.

Mr. Onkar Shetye, Executive Director of Aurum PropTech said, “2025 was not a year of demand destruction, but one of recalibration. Buyers remained active but more deliberate, while developers responded with disciplined supply management. This prevented inventory stress and helped prices remain resilient despite softer volumes.”

The slowdown was most pronounced in Q2 2025, which emerged as the weakest quarter in terms of new supply due to seasonal factors and heightened buyer caution. However, deferred demand was absorbed steadily in the second half of the year, particularly in southern markets.

City-level divergence widened throughout the year.

Hyderabad and Chennai emerged as consistent outperformers, recording sustained quarterly and year-on-year growth, while Mumbai and Bengaluru displayed volatility but closed the year on a firmer footing. Delhi NCR remained the only major market to record year-on-year sales declines across all four quarters, reflecting prolonged consolidation.

The total new supply across the eight cities fell 6% to 3,61,096 units in 2025 as against 3,85,221 units in 2024. This is the lowest annual supply since 2021.

In the October-December (Q4) 2025, supply rose 4% YoY and 0.2% QoQ to 92007 units.

Despite moderated sales, residential prices continued to rise across key markets, supported by limited ready inventory, elevated construction costs, and calibrated new supply. Developers largely avoided aggressive discounting, reinforcing pricing discipline.

“The housing market is transitioning into a more mature, execution-led phase,” added Mr. Onkar Shetye. Growth in 2026 is likely to be driven by affordability, infrastructure-led micro-markets, and city-specific fundamentals rather than broad-based acceleration.”