New Delhi, July 16 (IANS) India's real estate sector recorded equity capital inflows of $8.5 billion in the first half of 2026 -- the highest half-yearly figure on record -- marking 32 per cent year-over-year surge, a report said on Thursday.

The report from real estate consulting firm CBRE South Asia said the growth was underpinned by sustained momentum in land/development site acquisitions and built-up office assets.

India's real estate sector is poised for sustained investment momentum through 2026, driven by steady capital inflows into both built-up asset acquisitions and new project development, the report forecasted.

"Domestic investors have continued to demonstrate strong conviction in the sector's long-term fundamentals, even as the broader environment remains dynamic. We expect this momentum to carry into the second half of the year, with select foreign capital expected to re-engage as global conditions stabilise," said Anshuman Magazine, Chairman & CEO, India, South-East Asia, the Middle East & Africa, CBRE.

This momentum reflects the underlying resilience and depth of India's real estate capital markets, he added.

In Q2 2026 (April to June), total inflows stood at $3.4 billion, remaining broadly stable on an annual basis.

Land or development sites and built-up office assets collectively accounted for about 94 per cent of overall equity investment inflows during the quarter.

Developers led total capital infusion with a share of about 34 per cent, closely followed by domestic institutional investors at about 32 per cent. The overall capital inflows from institutional investors also increased sharply by 51 per cent sequentially in Q2 2026.

Among the major cities, Bengaluru, followed by Delhi-NCR and Mumbai, accounted for a cumulative share of about 60 per cent of total inflows during the quarter.

Domestic investors, primarily developers, dominated the overall investment inflows with a share of about 92 per cent during the quarter.

Over 88 per cent of total capital flows into site/land acquisitions were deployed towards residential and office developments, with the balance committed to data centres, mixed-use, and industrial & logistics (I&L) projects.

"India’s real estate investment landscape continues to demonstrate sustained growth with strong institutional investments in core assets and hectic activity in land transactions. Global investors and domestic players have been unanimous in their aggressive intent in expanding their real estate portfolios across all asset classes,” said Gaurav Kumar, Managing Director and Co-Head, Capital Markets, India, CBRE.

--IANS

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