India Real Estate Sees Record Capital Inflows

India's real estate sector has witnessed a remarkable surge in capital deployment, with equity inflows reaching a record USD 30.7 billion between 2024 and the first quarter of 2026. This represents an impressive 88% increase compared to the USD 16.3 billion recorded in 2022-2023. Land and office assets were particularly attractive, accounting for over three-fourths of the total capital deployed during this period.

Institutional investors significantly boosted their participation, with capital flows more than doubling from the 2022-2023 period. This increase was largely driven by investments in core segments like office, retail, and logistics. Real Estate Investment Trusts (REITs) also played a crucial role, deploying a record USD 2 billion in Q1 2026. Since 2024, total REIT deployment has reached USD 3.8 billion, a 66% rise over 2022-23 levels.

Structural reforms, including RERA and GST, have enhanced the transparency and credibility of India's real estate market. This has led to renewed engagement from financial institutions. Bank credit to commercial real estate grew 16% year-on-year, and NBFCs' advances crossed the Rs 1 lakh crore mark in September 2025. Investor appetite is strong, with over 74% of respondents in a recent survey planning to increase their Indian real estate allocations.