Domestic funds power a record share of India's $4.3-billion realty investment half

Institutional investment in Indian real estate rose 23 per cent year-on-year to $4.3 billion in the first half of 2026, spread across a record 54 transactions, according to JLL. The composition is the real story: domestic institutions contributed $2.8 billion — a 64 per cent share, the highest on record and a 165 per cent jump year-on-year — while foreign investment fell 37 per cent.

Office assets reclaimed the top slot, drawing 54 per cent of total flows at $2.3 billion across 17 deals, up 34 per cent from a year earlier. Average deal size, meanwhile, contracted about 40 per cent to roughly $80 million, as investors fragmented capital across more, smaller transactions to spread risk.

For MMR, the deepest institutional market in the country, a domestic-heavy capital base matters. Domestic money is less sensitive to global rate cycles and currency swings, which supports commercial valuations and keeps land bids competitive — a pattern visible in the recent run of office, data-centre and land transactions across Powai, Thane and Andheri.

The flip side of smaller average cheques is selectivity: capital is chasing completed, income-yielding assets and de-risked projects, so developers with clean titles and leased stock stand to benefit most from this cycle.