Real Estate Equity Inflow Hits Record USD 30.7 Billion

Mumbai, May 5 (PTI) India's real estate sector saw record equity inflows of USD 30.7 billion between 2024 and the first quarter of 2026, and the momentum is expected to sustain amid resilient demand and expanding avenues, a report said on Tuesday.

Public equity markets are expected to remain active over the next few years, further deepening India's REIT (Real Estate Investment Trust) market and broadening access to capital for developers and asset owners, said the CBRE-CII report.

India's real estate sector is positioned for sustained investment momentum in 2026, supported by growing institutional participation, resilient demand fundamentals and expanding capital market avenues, said the report, titled 'Deploying Capital in a Transformative Era: The Four-Quadrant Analysis'.

A steady pipeline of listings, including REITs and small and medium REITs (SM REITs), is likely to enhance market depth and provide additional monetisation routes for income-generating assets, the report said, adding that the equity inflows in the sector have reached the record level of USD 30.7 billion between 2024 and the first quarter of 2026.

It also noted that debt financing in the real estate sector surpassed USD 146 billion cumulatively from 2024 to Q1 2026, channelled through a diverse mix of structured debt instruments via trusteeships, banks, NBFCs, and other institutional avenues.


Three gateway cities -- Mumbai, Delhi-NCR, and Bengaluru -- attracted over 60 per cent of total debt flows, while select non-tier-I cities accounted for around 8 per cent of overall activity, reflecting growing investor confidence beyond established metros, according to a press release.

"The documented debt inflows reflect a long-term conviction and remain well-informed and regulated. India's BFSI sector has not just returned to real estate but has redefined its relationship with the sector," said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa at CBRE.

Further, bank credit to commercial real estate grew 16 per cent year-on-year between March 2025 and February 2026. Meanwhile, NBFC advances to commercial real estate surpassed the Rs 1 lakh crore milestone in September 2025, a five-year high, according to RBI data.

The report highlighted that REITs are evolving into a key pillar of the real estate ecosystem, with increasing acquisition activity and portfolio expansion expected to drive further institutionalisation of the sector.

Overall, sustained domestic capital flows, coupled with selective participation from global investors amid geopolitical uncertainties, are expected to underpin investment activity, it said, adding that strong occupier demand, particularly in office, logistics and emerging asset classes such as data centres, is further expected to support long-term growth prospects.

According to the report, notwithstanding challenges such as rising land prices, global volatility and pricing mismatches, the sector's structural transformation, improving market transparency and diversified funding channels are expected to reinforce its position as a high-conviction investment destination.