Indian Real Estate - Office Assets remain popular amongst Investors in Q1, 2026

Indian real estate witnesses a record surge in demand for office properties. In Q1, 2026, institutional investment climbed to a 25 percent YoY increase. According to a recent report by Colliers India, the figure accounts for $1.6 billion in the January-March period.

Amid a geopolitical scenario, India-based investors turned to the native real estate. Thus, domestic investment increased from 57 percent to $1.2 billion in the first quarter of 2026. The figure is massively higher than the previous year’s records and logs 75 percent cash inflow.

Combined, Delhi-NCR and Bengaluru record 46 percent of total inflow, which attracts nearly $ 0.4billion and $0.3 billion, respectively. The figures are driven mainly by office asset transactions in Indian real estate.

Although the market faces the heat of the geopolitical scenario, foreign investments decline by 23% on a YoY basis to $0.4 billion.

Badal Yagnik, CEO and Managing Director, Colliers India, said, despite volatility in the international market, domestic capital renders support to investment activity.

In India, office property remains popular amongst investors as it logs 50% of the total investment at $0.8 billion. Following it are the residential assets with a 20 percent share, valuing approximately $0.3 billion.

Despite the complex international situation, international investors also showed interest in multiple verticals. Including hospitality, retail, and alternative assets, which account for more than 20 percent of total inflow.

Earlier in 2025, India’s Office Leasing Activity crossed 70 million sq.ft.

India’s commercial property segment experienced upward growth momentum in 2025. Colliers India reports that office leasing in top Indian cities exceeds 70 million sq. ft. For the first time, India’s commercial real estate witnesses a strong sentiment and steady growth. The five-figure mark crossing incorporated demand for Grade ‘A’ premium workspaces.

Office leasing stood at 60 percent YoY (Year-on-Year Increase) with 71.5 million sq.ft in 2025. The year’s last quarter (Oct-Dec) plays a pivotal role as demand for office spaces leasing grew to 20 million sq ft. mark. It is more than the earlier quarter, reflecting the closure of large-ticket size deals and business expansion sentiment.

In 2025, Bangalore earned one-third of the office space leasing, the largest portion of the pie of 22.1 million sq.ft. Following India’s silicon city is Delhi-NCR, Hyderabad, Chennai, and Mumbai, with contributions to activities of 13-16 per cent. This growth indicate zest for business expansion across tier I cities.

In December 2025, Colliers India reported positive movement in the Indian real estate market in 2026. A strong investment sentiment from GCC and business expansion being a base for the same. The demand for qualitative and sustainable office spaces from BSFI and other industries will continue to grow in top-tier I cities.