Office Assets Remain Top Choice for Institutional Funds in Early 2026

Institutional money continued to favour office properties throughout the first half of 2026. The sector attracted $4.5 billion in total capital, a 50 percent rise from the previous year, with office assets accounting for the lion's share of new commitments.

Domestic investors led the charge, allocating $2.6 billion – 57 percent of the total – while overseas investors added $1.9 billion, up 24 percent year‑on‑year. The April‑June quarter alone saw a 70 percent surge in institutional flows to the office market, reaching $2.9 billion.

Beyond office spaces, mixed‑use and alternative real‑estate projects each drew about $0.8 billion, representing roughly one‑fifth of overall funding. Hospitality investment climbed to $0.3 billion, more than three times the level recorded a year earlier. In contrast, residential investment fell 43 percent to $0.5 billion as cost pressures and reduced sales tempered investor appetite.

Geographically, Chennai and Bengaluru together accounted for approximately $1.2 billion, roughly 27 percent of total institutional inflows, while multi‑city deals comprised 46 percent of the aggregate funding.