India Emerges as Key Investment Hub Amid Global Real Estate Capital Rebound

India Emerges as Key Investment Hub Amid Global Real Estate Capital Rebound

Global Real Estate Capital Rebounds in 2026 Global R; India Strengthens Position as a Strategic Investment Market: Knight Frank Active Capital 2026

Mumbai,  Jan 28: Global institutional investors are set to deploy USD 144 billion into commercial real estate in 2026, marking a clear rebound in investment activity, according to Knight Frank’s latest Active Capital Survey. The research captures the views of 119 of the world’s largest real estate investors, representing more than USD 1.4 trillion in assets under management, and signals renewed confidence underpinned by easing interest rates, improving occupier demand and long-term demographic trends. 

The survey reveals that 87% of investors (by AUM) intend to increase direct commercial real estate investment in 2026, while 62% expect to be net buyers, highlighting strong acquisition appetite globally. Against this backdrop, India is emerging as an increasingly relevant destination for global capital seeking scale, income visibility and long-term growth. The resurgence of investor interest is being led globally by a renewed focus on Core and Core-plus strategies, with USD37 billion of planned global investment targeting Core assets. 

Shishir Baijal, International Partners, Chairman and Managing Director, Knight Frank India,

“Global capital is returning, but it is far more disciplined than in previous cycles, India is increasingly being viewed as a defensive growth market, supported by strong occupier demand, improving asset quality and long-term structural drivers. This shift closely aligns with India’s evolving commercial real estate market, particularly in Grade A office assets across major cities such as Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune and Chennai. Structured partnerships and programmatic platforms are becoming the preferred route to scale and risk management”.

Harry Chaplin-Rogers, Director, International Capital, Knight Frank India,

“Global capital is clearly returning, but with far greater discipline than in previous cycles. India is increasingly being viewed as a core, long-term market, underpinned by resilient occupier demand, a rapidly improving stock of institutional-grade assets, and scalable partnership structures that allow global investors to manage complexity while achieving sustained growth.”

While the UK and Germany currently top global capital destination rankings, India is steadily transitioning from an emerging allocation to a strategic component of Asia-Pacific real estate portfolios, particularly for investors focused on long-term growth and diversification.

Knight Frank’s Active Capital Programme delivers global insights into capital flows, investor sentiment and real estate strategies, enabling clients to navigate market cycles with clarity and confidence.

Offices Reclaim Leadership, Supported by Occupier Confidence

Globally, offices have re-emerged as the most targeted asset class, with 69% of investors planning allocations in 2026. However, investors are highly selective, favouring well-located, ESG-compliant assets that meet modern workplace requirements, while avoiding assets facing long-term obsolescence. This trend mirrors India’s experience, where leasing momentum continues to be driven by Global Capability Centres (GCCs), technology firms and domestic corporates, collectively accounting for approximately 75%, thereby reinforcing confidence in high-quality office stock.

Living, Logistics and Retail Reinforce India’s Long-Term Appeal

Beyond offices, living sectors are the second most targeted globally, with 65% of investors planning allocations, attracted by demographic tailwinds and defensive income characteristics. While institutional living segments such as rental housing and student accommodation remain nascent in India, they represent a significant medium- to long-term opportunity given rapid urbanisation and a young population profile.

Industrial and logistics assets remain a high-conviction sector, targeted by 63% of investors globally, supported by supply-chain reconfiguration, e-commerce growth and infrastructure investment, trends that are particularly pronounced in India. 

Retail has also returned to investor focus globally, with 56% of investors planning allocations, reflecting stabilisation and opportunities in dominant, experience-led Shopping Centres.

Partnerships and Joint Ventures Central to India Strategy

The survey highlights a growing preference for collaboration, with 68% of investors, collectively representing USD94 billion of planned investment, willing to consider joint ventures or capital partnerships in 2026. This approach is especially relevant in India, where local expertise, platform scale and execution capability are critical to investment success.

Operational Real Estate Gains Momentum

Operational real estate sectors, including data centres, infrastructure and healthcare, are gaining traction globally as investors seek exposure to long-term structural tailwinds. In India, rising digital adoption, expanding healthcare needs and sustained public infrastructure investment are translating into growing interest across these segments.

Nick Braybrook, Partner and Global Head of Capital Markets, said:

“This is empirical evidence of a turnaround in the global real estate investment market. The nuances within the findings are fascinating – after several torrid years for the global office market, the undeniable return of the occupiers has finally spurred a return of the investors, and the sector has gone from almost last place to now first. The return of core investors is the missing piece of the jigsaw, being the pricing that the rest of the market builds from. Capital remains selective, concentrating in locations where confidence in values, liquidity and exit prospects are highest, but in those markets the growing imbalance between buyers and net sellers points to clear competitive tension. The wide spread of target returns reported in the survey also bodes well for overall global turnover levels going forward.”

Victoria Ormond, CFA, Partner and Head of Capital Markets Insight at Knight Frank said.

“Interest rates are the single most influential factor shaping real estate investment decisions, followed by occupier demand and bond yields. In the year ahead, investors are targeting early-cycle opportunities alongside longer-term thematics, set against a backdrop of global uncertainty. Many are looking beyond short-term volatility to pursue a mix of repriced assets and sectors set to benefit from long-term structural tailwinds. Joint ventures and capital partnerships are emerging as critical tools for accessing scale, managing complexity and entering new geographies and sectors. These structures are particularly relevant for operational segments such as infrastructure, data centres, senior living and single-family rental – areas driven by demographic and technological shifts but requiring specialist expertise. Beyond enabling access, partnerships may also help resolve capital misallocations arising from the downturn. While investors are increasingly prepared to look through geopolitical noise, rigorous sensitivity analysis and scenario planning remain essential to mitigate risk and build resilience.”