India’s real estate sector attracted a record USD 8.5 billion in institutional investments during the first half of 2026, according to CBRE. This is a 32% increase compared to the same period last year. The report shows that investors remain confident about India’s long-term real estate market. It also points to a change in where future investments are likely to go.
Institutional investment is at a record high
Institutional investors are broadening their investment strategy, according to the research. They are investigating new markets with potential for long-term growth rather than concentrating primarily on well-established metropolitan areas.
This change demonstrates that investors are making long-term plans.
They are looking for cities that can support economic growth, urban expansion and new investment opportunities over the coming years.
Strong confidence in India's real estate market is indicated by the report. Despite global uncertainty, rising institutional investment indicates that investors are cognizant of the market's long-term potential.
These expenditures support large-scale initiatives and structured growth.
They also indicate that India continues to remain an attractive destination for real estate capital.
Tier-II cities are gaining attention
One of the biggest takeaways from the report is the growing interest in Tier-II cities. As investors look beyond metro markets, these cities are becoming an important part of India’s real estate growth story.
With NCR, Sonipat is emerging as a strong example of this trend. Projects such as the Delhi-Panipat RRTS, the proposed Delhi Metro extension to Kundli, NH-44, the KMP Expressway and Urban Extension Road-II(UER-II) are improving connectivity with Delhi and nearby regions.
The city is also benifiting from the Maruti Suzuki plant at Kharkhoda and Rajiv Gandhi Education City. These developments are creating jobs, attracting investment and supporting planned urban growth.
As a result, Sonipat is no longer seen only as an affordable alternative to Delhi. It is gradually emerging as a real estate destination with long-term growth potential.
What developers has to say?
Mr. Rahul Singla, Director of MAPSKO Group says, “The recent CBRE report, capturing USD 8.5 billion in institutional investments in the first half of 2026, indicates a distinct change in the way investors are engaging with India's real estate sector. Capital is progressively shifting towards cities providing long-term growth opportunities instead of solely established metropolitan markets. This is positive for developing locales such as Sonipat, where robust infrastructure expansion, industrial advancement, and enhanced connectivity are fostering a conducive investment climate. With India's urban growth, Tier-II cities that possess solid fundamentals are projected to draw an increased portion of institutional investment in the years ahead.”
Rajat Bokolia, CEO, Newstone says, “According to the CBRE research, institutional investments in H1 2026 increased by 32% to USD 8.5 billion from the previous year, suggesting increased confidence in India's real estate market. More significantly, it shows that investors are looking outside of conventional metropolitan areas. Sonipat and other cities are well-positioned to benefit from this shift. Sonipat is continuously creating the fundamental components that institutional investors look for when identifying the country's future economic hubs with improved connectivity, industrial growth, and planned urban development.”
Yashank Wason, Managing Director, Royal Green Realty says, “The recent CBRE report indicates that India's real estate market secured a historic USD 8.5 billion in institutional investments in the first half of 2026. This indicates robust investor trust in the market. The report signals that investors are slowly expanding their focus beyond conventional metropolitan areas. Tier-II markets like Sonipat, Indore, and Rohtak are gaining from improved connectivity, industrial expansion, and organized urban development. With this trend ongoing, these cities are projected to draw in more institutional investment and have an increasingly significant impact on India's real estate expansion narrative.”
A positive outlook for emerging markets
CBRE expects investment activity to remain strong during the rest of 2026. This is a positive sign for India’s real estate sector.
As investors continue to explore new growth markets, Tier-II cities are likely to attract more attention. Cities like Sonipat, backed by better connectivity an economic development, are well places to benefit from this long-term investment trend.
The record institutional investment in H1 2026 reflects a broader shift in India's real estate landscape, where capital is increasingly aligned with long-term urban and economic growth rather than established metropolitan markets alone. As connectivity improves and economic activity expands across Tier-II cities, markets such as Sonipat are expected to gain a larger share of real estate investments. This trend is likely to create new opportunities for developers, businesses, and homebuyers while supporting more balanced and geographically diversified growth across India's real estate sector.
