India’s real estate sector witnessed record equity inflow of $30.7 billion between 2024 and Q1 2026, according to a report released by real estate consultancy CBRE South Asia recently. The flagship report titled Deploying Capital in a Transformative Era: The Four-Quadrant Analysis was launched at the CII BFSI Summit 2026 in Mumbai, where CBRE was the Knowledge Partner. The inflows have been 88 per cent higher than the inflows of $16.3 billion witnessed in the preceding two years – 2022 and 2023.
Between 2024 and Q1 2026, acquisition of land/development sites and built-up office assets cumulatively accounted for more than three-fourths of the overall capital inflows. Moreover, institutional investors, accounting for about 30 per cent of the total investments, recorded a more than two-fold increase in capital flows, as compared to that in the 2022-23 period. It was largely driven by an uptick in deployment towards core segments such as built-up office, retail and logistics assets.
The report, which analysed capital flow across four quadrants: public equity, private equity, public debt and private debt, added that during 2024-Q1 2026, India’s real estate sector witnessed the acquisition of roughly 6,025 acres of land for greenfield developments, representing a massive capital deployment of about $13 billion. Over 80 per cent of the funds dedicated to site acquisitions were deployed for residential, mixed-use and office projects, with the rest committed to warehousing, data centres and retail developments.
It also highlighted the deepening role of public equity markets in the sector. REITs achieved a nearly six-fold surge in market capitalisation to Rs1.7 lakh crore between April 2020 and December 2025. Capital deployment by listed REITs for the acquisition of built-up, investment-grade office and retail assets surged to a record $2 billion in Q1 2026, significantly representing a 4x q-o-q and 6x y-o-y increase.
Furthermore, the total deployment from 2024 through Q1 2026 reached $3.8 billion, marking a 66 per cent rise. compared to the 2022-23 period. According to the report, bank credit to commercial real estate grew 16 per cent y-o-y between March 2025 and February 2026. Meanwhile, NBFC advances to commercial real estate surpassed the Rs1 lakh crore milestone in September 2025, a five-year high, according to RBI data. More than just recovery, these trends show growing institutionalised conviction towards the sector. Top-tier developers are also increasingly leveraging the public debt markets for refinancing.
More transparent
“We are witnessing the pay-off of a decade of structural reforms,” explains Anshuman Magazine, chairman & CEO, India, South-East Asia, the Middle East & Africa, CBRE. “From RERA and GST to the RBI’s Project Finance Directions in 2025, each intervention has made India’s real estate market more transparent, more resilient and more institutionally credible. The documented debt inflows reflect a long-term conviction and remain well-informed and regulated. India’s BFSI sector has not just returned to real estate but has redefined its relationship with the sector.”
“India’s real estate sector has evolved into a key avenue for institutional capital, driven by strong investor confidence, reforms and the growing role of REITs,” affirms Vir S. Advani, chairman, CII Western Region & CMD, Blue Star. “Sustained policy support, regulatory clarity and closer alignment between industry and financial institutions will be critical to maintaining this momentum and expanding investment across segments and cities. Real estate and BFSI together form a powerful engine of India’s growth. With the sector contributing 7-8 per cent to GDP and projected to reach ~13 per cent by 2030, stronger linkages between the two will unlock investment, support sustainable development, and help shape future-ready cities.”
Debt financing in India’s real estate sector surpassed $146 billion cumulatively from 2024 to Q1 2026, channelled through a diverse mix of structured debt instruments via trusteeships, banks, NBFCs and other institutional avenues. According to the report, beyond the core sectors, India’s alternative real estate asset classes are emerging as the next major frontier for institutional capital. Data centres continue to be regarded as a top-tier investment segment. The momentum extends through hospitality, flexible workspaces, healthcare and senior living segments.