Foreign investment in Indian real estate falls 75% in Jan-March; domestic investors cushion decline: Colliers report

Foreign investment in India’s real estate sector dropped sharply during January-March, falling 75 per cent quarter-on-quarter to $400 million amid global uncertainty triggered by the West Asia conflict, according to PTI.Data from real estate consultant Colliers showed that total institutional investments declined 61 per cent to $1.6 billion in Q1 2026 from $4.2 billion in the October-December quarter of 2025.Of the total inflows, domestic investors contributed $1.2 billion, accounting for nearly three-fourths of the investments, while foreign investors brought in just $0.4 billion. In the previous quarter, domestic and foreign inflows stood at $2.6 billion and $1.6 billion, respectively.Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India, said institutional investments continue to show resilience, supported by strong domestic demand.“While global investors are likely to remain cautious in the near-term on account of volatilities in trade, crude and commodities markets, this phase is expected to be transient in nature,” Yagnik said.He added that India’s favourable demographics and consumption-driven economy will help sustain its positioning in the Asia-Pacific region.Colliers said foreign investors may adopt a “wait-and-watch” approach in the coming quarters, potentially impacting inflows, though domestic capital is expected to provide some stability.Among asset classes, investments in office properties fell significantly to $821.1 million during January-March from $3,051.8 million in the preceding quarter.The institutional investment data includes inflows from AIFs, private equity, pension funds, sovereign wealth funds, foreign banks, real estate funds and REITs, among others.Colliers expects domestic investors to remain active and partly offset the impact of subdued foreign participation in the near term