Global Caution Dampens Indian Real Estate Investment
Foreign investment in Indian real estate fell by 75% in Q1 2026 due to global uncertainties, primarily those linked to the West Asia conflict. Domestic investment rose, accounting for 75% of total inflows. Colliers predicts continued caution from foreign investors until economic stability improves.
- Country:
- India
Foreign investments in Indian real estate significantly dropped by 75% during the first quarter of 2026, attributed to ongoing disturbances in West Asia, reported real estate consultant Colliers India. The investments fell from USD 1.6 billion in the previous quarter to only USD 400 million.
This decline contributed to an overall 61% decrease in institutional real estate investments, which totaled USD 1.6 billion compared to USD 4.2 billion the previous quarter. Domestic investors contributed USD 1.2 billion of the total, indicating strong internal market confidence.
Badal Yagnik, CEO & Managing Director of Colliers India, noted the resilience in domestic real estate investments. He attributed potential declines in future foreign investment to global market volatility, which he believes will be temporary. He highlighted India’s strategic market positioning in the APAC region due to its demographics and expanding economy.
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