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Investors pivot from housing to commercial realty

New Delhi: Institutional investments in India’s housing market declined 85 per cent to $154 million during the January-June period, according to Cushman & Wakefield.

Real estate consultant Cushman & Wakefield on Tuesday released data on institutional investments in Indian real estate, stating that total inflows in the first six months of 2026 rose 6 per cent to $3.46 billion from $3.26 billion in the corresponding period of the preceding year.

The single-digit growth in investments was mainly driven by domestic investors. Among asset classes, office and data centre projects received more funding. As per the data, the total inflows in the housing segment plunged 85 per cent to $153.62 million in January-June from $1,019.88 million in the year-ago period. Investments in retail real estate fell to $161.53 million from $542.38 million.

However, the office segment attracted $1,970.74 million fund in the first half of this year, a more than two-fold jump from $729.48 million in the same period last year.

Inflows in data centre projects stood at $838.97 million during the January-June period of 2026 as against nil inflow in the year ago period. Somy Thomas, Executive Managing Director, Capital Markets, Cushman & Wakefield, said the capital allocation is becoming increasingly differentiated across asset classes.

“While office continues to attract a broad spectrum of investors owing to its maturity, liquidity and stable income profile, we are also seeing growing interest in the data centre segment as investors seek to capitalise on India’s expanding digital infrastructure ecosystem. This diversification of capital is contributing to a deeper and more resilient investment landscape,” he said.

Thomas expected investment activity to remain resilient through the second half of 2026, with domestic investors continuing to anchor market momentum. During the first six months of 2026, investments by domestic institutions stood at $2.2 billion while foreign investments totalled $1.3 billion.