New Delhi [India], July 21 : India's institutional investment activity is expected to remain stable in the second half of the year, supported by strong macroeconomic fundamentals, infrastructure-led growth and sustained domestic capital flows, as per Cushman & Wakefield's Q2 2026 Capital Marketbeat report.
The report noted that institutional investments in India's real estate sector rose 16 per cent quarter-on-quarter to USD 1.9 billion in Q2 2026, led by the office segment, which attracted nearly USD 1 billion and accounted for 51 per cent of total investments.
At the same time, investment activity moderated 7 per cent year-on-year (YoY), although the market continued to see steady deployment, supported by strong participation from domestic investors and sustained demand for stable, income-generating assets.
"For the first half of 2026, institutional investments totalled USD 3.5 billion, marking a 6% increase over H1 2025," the report noted.
Domestic institutions increased deployment by 57 per cent in H1 2026 compared with H1 2025, while foreign institutions saw a 33 per cent decline during the same period, the report noted.
The report further highlighted, total fundraising in Q2 2026 stood at USD 2 billion, rising 1.2 times year-on-year and 3.6 times quarter-on-quarter. Within this, office-focused funds and REITs accounted for 51 per cent of the funds raised, while multi-sector funds attracted the remaining 49 per cent.
Commercial office sale transactions stood at USD 463 million in Q2 2026, declining 19 per cent year-on-year and 11 per cent quarter-on-quarter, the report noted.
Overall, India's Institutional investment activity is expected to remain stable in H2 2026, driven by strong macroeconomic fundamentals and infrastructure-led growth. "Domestic capital is expected to remain the primary driver of investment activity, while foreign investor participation is likely to improve gradually as global macroeconomic conditions stabilize," it noted.