The survey reveals that 87% of investors, by assets under management, plan to increase their direct exposure to commercial real estate in 2026, while 62% expect to be net buyers. This marks a clear shift from the cautious sentiment seen in recent years. Against this backdrop, India is steadily strengthening its position as a preferred destination for long-term global capital, offering scale, income visibility and improving asset quality.

While the UK and Germany continue to top the list of global capital destinations, India is transitioning from a peripheral emerging market allocation to a strategic component of Asia-Pacific real estate portfolios. Investors are increasingly attracted to India’s resilient occupier demand, expanding base of institutional-grade assets and favourable demographic profile.

Offices have re-emerged as the most targeted asset class globally, with 69% of investors planning allocations in 2026. However, capital remains selective, focusing on well-located, ESG-compliant and future-ready office assets. This trend closely mirrors India’s office market, where leasing activity continues to be driven by Global Capability Centres (GCCs), technology firms and domestic corporates, together accounting for nearly three-fourths of demand across major cities such as Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune and Chennai.

Beyond offices, living sectors have emerged as the second most preferred asset class globally, with 65% of investors targeting allocations. Although institutional rental housing and student accommodation are still nascent in India, Knight Frank notes that these segments present a sizeable medium- to long-term opportunity due to rapid urbanisation and a young, mobile population.

Industrial and logistics assets remain a high-conviction segment, supported by supply-chain reconfiguration, e-commerce growth and infrastructure investment—trends that are particularly pronounced in India. Retail assets have also returned to investor focus globally, with over half of respondents planning allocations, reflecting stabilisation and renewed interest in dominant, experience-led shopping centres.

The survey highlights a growing preference for joint ventures and capital partnerships, with 68% of investors—representing USD 94 billion of planned investment—open to collaborative structures in 2026. This approach is especially relevant in India, where local execution capability, governance and platform scale play a critical role in investment success.

Operational real estate segments such as data centres, healthcare and infrastructure are also gaining traction globally. In India, rising digital adoption, expanding healthcare needs and sustained public infrastructure spending are translating into growing investor interest across these sectors.

Knight Frank noted that interest rates remain the single most influential factor shaping investment decisions, followed by occupier demand and bond yields. While geopolitical risks persist, investors are increasingly willing to look beyond short-term volatility and focus on repriced assets and sectors aligned with long-term structural tailwinds.

Also Read: India’s Real Estate Market Shows Resilience in 2025 Despite Global Headwinds

The post Global Real Estate Investors Return in Force in 2026 as India Gains Strategic Importance appeared first on Square Feat India.

While optimism surrounding Diwali-period home sales kept sentiment positive, investors largely stayed on the sidelines, preferring to wait for official festive booking disclosures expected in the coming week.

Weekly Snapshot — Consolidation with a Positive Bias

The realty index traded in a narrow range between 875 and 895 levels, reflecting a sector in consolidation.
Early in the week, markets opened firm, lifted by residual festive enthusiasm and steady institutional inflows. However, by midweek, profit-taking in smaller names and muted retail participation weighed on overall momentum.

Despite the cautious tone, analysts pointed out that the real estate rally remains intact — it’s simply taking a breather after months of strong gains.

Top Performers — Big Developers Dominate the Week

• DLF Ltd: Up 2.4%, riding on continued institutional buying and luxury housing demand in NCR.
• Macrotech Developers (Lodha): Gained 2.1%, ahead of expected strong festive sales data.
• Godrej Properties: Added 1.8%, supported by upbeat commentary on presales momentum.
• Oberoi Realty: Rose 1.6%, with Mumbai’s high-end residential market showing sustained strength.
• Prestige Estates: Up 1.3%, buoyed by its robust leasing pipeline and southern market demand.

Institutional preference remained firmly tilted toward these blue-chip developers, driven by their strong balance sheets, visible cash flows, and credible project pipelines.

Underperformers — Mid-Caps Take a Breather

• Sobha Ltd: Fell 1.7%, giving up earlier gains amid profit-booking.
• Kolte-Patil Developers: Down 1.4%, as volumes thinned through the week.
• Brigade Enterprises: Lost 1.2%, extending its consolidation phase.
• Sunteck Realty and Anant Raj: Closed flat, reflecting muted participation.

The divergence between large and mid-cap developers continued for a third straight week, underscoring a flight to quality in investor behavior.

Biggest Takeaways from the Week

1. Market in Pause Mode: The realty sector is consolidating, not correcting — investors are waiting for the next data point.
2. Festive Optimism Holds: Channel checks and broker commentary point to healthy Diwali-period demand across metros.
3. Institutional Money Prefers Scale: FIIs and mutual funds continue to increase exposure to large, low-leverage developers.
4. Mid-Caps Need Catalysts: Without new launches or land announcements, smaller developers are lacking investor triggers.
5. Macro Tailwinds Intact: Interest rates remain stable, mortgage disbursals are rising, and housing affordability continues to support demand.

What to Watch in the Coming Week

• Festive Booking Data: Developers like Lodha, DLF, and Godrej are expected to release their Diwali-period booking numbers — a major sentiment driver.
• Institutional Flow Patterns: Continued fund inflows could sustain the index’s stability.
• Mid-Cap Revival: A rebound in Sobha or Brigade would suggest broader investor participation.
• New Project Launches: Announcements by top developers could provide stock-specific momentum.
• Policy and Credit Updates: Any RBI commentary on housing credit or liquidity could influence the sector.

Analysis — Consolidation Before Confirmation

This week confirmed what many in the market expected — the real estate sector is taking a strategic pause.
The fundamentals remain strong: developers are delivering record presales, pricing power is holding up, and institutional confidence is intact. Yet, the sector needs fresh confirmation through data to sustain the rally.

Analysts expect Diwali booking numbers to act as the next big trigger. If festive sales come in above expectations, the Nifty Realty Index could push toward new highs. However, if the numbers disappoint, the market may remain range-bound through mid-November.

In essence, the sector stands at an inflection point — the pause is healthy, but the next move will depend on proof that India’s home-buying momentum remains robust beyond the festive spike.

Also Read: Realty Stocks Build Early Gains: Large Developers Lead Morning Trade as Markets Open Strong

The post 🏗️ Realty Stocks Wrap Up the Week Mixed: Big Builders Stay Resilient as Market Awaits Festive Sales Data Next Week appeared first on Square Feat India.

While the sector continues to ride on strong post-festive sentiment and stable interest rates, traders largely chose to book profits in mid-cap names, preferring to stay light ahead of Diwali booking disclosures expected over the next few days.

Market Recap — Strength at the Top, Caution Beneath

Realty stocks opened firm but slipped into a narrow range as the day progressed.
Most large-cap developers held their ground, while smaller players lagged on weak liquidity and profit-taking.

Analysts said the sector’s movement was typical of a consolidation phase, with investors waiting for concrete sales data to confirm whether festive demand has translated into sustained housing momentum.

Highlights of the Day

• The Nifty Realty Index traded between small gains and losses before closing slightly positive.
• Institutional interest remained visible in top-tier developers, but volumes were modest.
• Mid-caps like Sobha, Kolte-Patil, and Brigade stayed under pressure, indicating that broader participation remains limited.
• Overall sentiment stayed constructive, with investors expecting the next leg of movement to be driven by festive sales performance.

Key Factors Shaping Sentiment

1. Festive Optimism Still in Play: Market participants remain hopeful that Diwali-period bookings will validate demand momentum.
2. Earnings Stability: Developers’ second-quarter numbers continue to provide earnings visibility for the next two quarters.
3. Macro Tailwinds: A stable policy environment and steady home-loan rates are lending support to sector valuations.
4. Institutional Preference for Quality: Mutual funds and FIIs remain focused on large, financially sound developers.

What’s Keeping Gains in Check

1. Profit-Taking in Smaller Counters: Traders locked in profits after recent October rallies.
2. Absence of Triggers: With no new policy or project-related announcements, momentum stayed muted.
3. Limited Breadth: Retail participation and turnover remain below pre-festive averages.

What to Watch Ahead

• Festive Booking Data: Developers are expected to release official Diwali sales numbers — this will determine the next directional move for the sector.
• Institutional Flows: Continued fund inflows could sustain the rally even if mid-cap action remains subdued.
• Mid-Cap Rebound: Recovery in mid-tier names would indicate confidence spreading across the sector.
• Macro Indicators: Any commentary on credit growth, home-loan disbursals, or inflation trends may influence sector positioning.
• Project Announcements: New launches or land deals could bring stock-specific momentum.

Analysis — Calm Before the Next Catalyst

Thursday’s session underscores that the real estate rally remains intact but restrained.
While fundamentals are strong and housing demand steady, investors are waiting for confirmation through sales data before adding fresh exposure.

Analysts suggest the sector is entering a short-term consolidation zone, where strong developers may continue to outperform while the broader market catches its breath.
The coming week could act as a litmus test for sentiment — if festive booking data meets expectations, the rally could resume with broader participation.

Also Read: Realty Stocks Spark at Tuesday’s Open — Big Developers Lead Early Surge

The post 🏗️ Realty Stocks Pause After a Choppy Session: Sector Awaits Festive Booking Data to Set Next Direction appeared first on Square Feat India.

Surge in Institutional Confidence

The sharp correction in Nifty 50 and Sensex since September 2024 has made retail and short-term investors cautious. However, institutional investors have taken a long-term view, particularly in real estate, which continues to attract strategic funding.

“Our analysis highlights the resilience of the real estate sector, supported by robust institutional confidence in India’s economic fundamentals,” said Anuj Puri, Chairman of ANAROCK Group. “Despite volatility, capital markets remain strong, and the sector has witnessed unprecedented QIP fundraising, reinforcing its financial strength and expansion potential.”

Real Estate Leads the QIP Boom

The real estate sector topped the list in both capital raised and the number of QIP issuances in 2024. The following table highlights major QIP transactions in the sector:

Comparing Trends: 2023 vs. 2024

The record-breaking QIP figures in 2024 mark a stark contrast to 2023, when only 43 QIP issues were recorded, raising INR 55,109 crore across all sectors. Notably, real estate developers did not raise any funds through QIPs in 2023, making 2024 a remarkable turnaround year for the sector.

Why QIPs?

QIPs have become the preferred fundraising method for developers due to their efficiency and cost-effectiveness compared to private equity and bank loans. They provide liquidity while minimizing shareholder dilution and enabling large-scale projects. Institutional investors, including mutual funds and pension funds, inject substantial capital, fueling sectoral growth.

The benefits of QIP fundraising include:

• Faster capital raising with lower costs
• Strategic funding for land acquisition, construction, and debt refinancing
• Enhanced market credibility, attracting further investments
• Accelerated project timelines and expansion capabilities

Stock Market Volatility and Real Estate Resilience

Throughout 2024, the Nifty 50 and Sensex experienced significant volatility. While the first half of the year saw strong corporate earnings and increased foreign institutional investment, market corrections in the latter half were driven by global geopolitical tensions, fluctuating oil prices, and changing monetary policies.

Despite these fluctuations, the real estate sector demonstrated resilience, with the Nifty Realty Index securing the fourth-highest annual gain at 34.67%.

Outlook for 2025

“The volatility seen in late 2024 suggests a mixed outlook for QIP fundraising in 2025,” said Puri. “However, the continued strength of the real estate index indicates sustained investor confidence.”

Institutional investors seeking stability amid broader market fluctuations are expected to remain active in real estate QIPs. If global monetary policies stabilize and domestic economic indicators remain strong, QIP fundraising in real estate is likely to maintain momentum, supporting further expansion, land acquisitions, and debt refinancing for major players.

Conclusion

Despite stock market volatility, 2024 set a new benchmark for QIP fundraising, particularly in the real estate sector. Institutional investors continue to back India’s real estate market, recognizing its long-term growth potential. With continued investor confidence and strategic capital inflows, the sector is poised for sustained expansion in 2025 and beyond.

Source: NSE & ANAROCK Research

Also Read: Ajay Devgn real estate

The post QIP Fundraising Reaches Record High in 2024, Real Estate Leads with INR 22,320 Cr appeared first on Square Feat India.

The industrial & warehousing segment emerged as the top-performing asset class, accounting for USD 2.5 billion in investments, a 190% surge from the previous year. The sector contributed 39% of the total realty inflows, surpassing the office segment’s USD 2.3 billion (36% share). Foreign investments dominated, contributing over 80% to the industrial inflows, highlighting India’s growing prominence as a global manufacturing hub.

The office segment also witnessed significant activity in the second half of the year, with investments rebounding to USD 2.3 billion. Meanwhile, residential investments grew by 46% YoY, reaching USD 1.1 billion, driven by sustained interest from domestic players.

Key Highlights of 2024 Realty Investments:

• Total Investments: USD 6.5 billion, the highest since 2020, up 22% YoY.
• Industrial & Warehousing: USD 2.5 billion, marking a 190% increase.
• Office Assets: USD 2.3 billion, driven by foreign investments (77%).
• Residential Sector: USD 1.1 billion, up 46% YoY.
• Domestic Investments: Accounted for 33% of inflows, increasing by 27% YoY.

Mumbai attracted the highest share of investments at 24%, with USD 1.6 billion inflows primarily focused on office and industrial assets. Multi-city deals accounted for 39% of total investments, while Bengaluru, Chennai, and Delhi NCR maintained steady inflow shares of 8-9% each.

Key Drivers:

1. Industrial Growth: India’s manufacturing boom and enhanced logistics efficiency fueled industrial & warehousing investments.
2. Domestic Momentum: Domestic investments surged, reflecting growing confidence among Indian institutional investors.
3. Foreign Capital: Foreign investments comprised 66% of the total inflows, with APAC investors contributing significantly.

Expert Insights:
“Indian real estate continues to attract robust investments, underscoring the sector’s resilience and growth potential. Industrial and warehousing assets have taken center stage, reflecting strong demand and India’s emergence as a manufacturing hub,” said Badal Yagnik, CEO, Colliers India.

Looking ahead, the real estate market is expected to sustain its momentum in 2025, with Tier-I cities remaining the primary focus. Rising demand for Grade A developments and evolving infrastructure initiatives are likely to drive further growth across asset classes.

City-Wise Investment Trends (2024):

• Mumbai: USD 1.6 billion (24% share).
• Multi-City Deals: 39% share of total investments.
• Bengaluru & Chennai: 9% and 8% shares, respectively.

Indian real estate continues to shine as a lucrative investment destination, with 2024 marking a pivotal year in its growth trajectory.

Also Read: Industrial & Logistics Real Estate

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In a robust post-pandemic environment, six developers have collectively raised INR 5,275 crore via Initial Public Offerings (IPOs) since 2021, with Macrotech Developers (Lodha) leading the pack at nearly INR 2,500 crore.

Record Launch and Sales Growth

The recovery in residential real estate has prompted a surge in new project launches, with approximately 13.62 lakh units introduced across the top seven cities from 2021 to September 2024. Concurrently, housing sales reached about 14.36 lakh units, contributing to a 10% reduction in unsold inventory in the same period, despite a significant increase in supply.

Anuj Puri, Chairman of ANAROCK Group, highlighted the importance of QIP activity, stating, “The real estate sector’s contribution to QIP issuance reflects the growing confidence of institutional investors in Indian real estate.”

Driving Factors Behind QIP and IPO Activity

Several factors are fueling this upward trend in the sector:

1. Improved Transparency: Legislative measures like the Real Estate (Regulation and Development) Act (RERA) and the implementation of Goods and Services Tax (GST) have enhanced transparency, instilling confidence in investors and homebuyers.
2. Strong Post-Pandemic Recovery: Grade A developers are capitalizing on the heightened demand for quality residential projects, resulting in a rapid absorption of available inventory. By September 2024, the inventory overhang was at its lowest in 14 months.
3. Surge in Residential Sales Value: In the first nine months of 2024, residential sales value soared to INR 4.2 lakh crore, a remarkable 22.6% increase from the previous year and a 115% jump from 2021 figures.
4. Nifty Realty Index Performance: The Nifty Realty Index has gained nearly 250% from January 2021 to September 2024, reflecting strong investor confidence in the sector.
5. Institutional Investor Confidence: The unprecedented QIP issuances in real estate this year signify renewed faith from institutional investors.

As developers continue to seek funding through QIPs and IPOs to meet rising demand and expand their portfolios, experts anticipate increased investor participation in the real estate sector in the coming years.

Also Read: Oberoi Realty Reports Strong H1FY25 and Q2FY25 Results: Booking Value at ₹2,509.45 Crores; PBT Rises to ₹1,557.50 Crores

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North India is expected to lead this expansion, accounting for 44% of the upcoming supply, with key cities such as Ludhiana, Jaipur, and Lucknow at the forefront. The South follows with a 30% share, led by cities like Coimbatore, Mallapuram, Thrissur, and Trivandrum. The eastern region, notably Guwahati, will contribute approximately 4.5 million square feet, while Western India is witnessing major developments in cities like Goa, Surat, and Ahmedabad.

Dr. Samantak Das, Chief Economist and Head of Research and REIS at JLL, noted that the average mall size in these cities is projected at 375,000 square feet, with four projects anticipated to exceed 1 million square feet. Most of these urban centers are located in state capitals or large cities, serving a broad consumer base that includes surrounding smaller towns, thereby creating opportunities for mid-scale and large-scale malls that enhance tenant mix and shopping experiences.

As confidence among retailers grows, many premium and bridge-to-luxury brands are entering these markets, reflecting rising consumer aspirations. Notable examples include Daiso Japan at Elante Mall in Chandigarh and Charles Tyrwhitt at Palladium Ahmedabad, marking their first stores in India.

Developers are actively acquiring land in strategic locations for these retail projects, particularly in cities such as Jaipur, Lucknow, Mohali, Ahmedabad, Surat, and Coimbatore. Some plans also include mixed-use developments that will integrate retail, food and beverage, office spaces, and hospitality.

Institutional investors are increasingly focused on these emerging urban centers as well, recognizing the potential in Tier II and III cities. Approximately 30% of institutionally held retail assets, totaling around 9.12 million square feet, are now located in these smaller cities, including Amritsar, Chandigarh, Ludhiana, Udaipur, Mysuru, Mangaluru, Indore, and Bhubaneswar.

As developers capitalize on lower land costs and growing consumer demand, the retail landscape in India continues to evolve, offering a mix of national and international brands and boosting confidence among retailers in these burgeoning markets.

Also Read: Indoor Amusement Centers Transforming India’s Retail Landscape: JLL Report

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