Global institutional investors plan to deploy nearly USD 144 billion into commercial real estate in 2026, led by offices, logistics, and living sectors. India is emerging as a strategic market, supported by strong occupier demand, high-quality office stock, and scalable partnership opportunities. Core and Core-plus strategies dominate the investment approach.
After a period of caution, global institutional investors are preparing to channel nearly USD 144 billion into commercial real estate in 2026. Knight Frank’s Active Capital Survey, which surveyed 119 investors managing over USD 1.4 trillion in assets, shows that 87% of respondents plan to increase direct real estate exposure, with 62% aiming to be net buyers. This resurgence is driven by easing interest rates, robust occupier demand, and favourable long-term demographics.
Investors remain disciplined, targeting income, quality, and resilience. About USD 37 billion is set aside for lower-risk Core and Core-plus properties.
India Emerges as a Strategic Destination
India is becoming important in global investment plans, moving from just an emerging market to a key part of Asia-Pacific portfolios. Shishir Baijal, Chairman and MD of Knight Frank India, says, “India is increasingly seen as a safe growth market, thanks to strong demand, improving property quality, and lasting growth drivers.” Cities such as Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune, and Chennai are pushing up demand, especially for top office buildings.
Offices Lead the Investment Charge
Office spaces are regaining investor attention, with 69% of participants planning allocations in 2026. This marks a reversal from post-pandemic uncertainty. Institutional investors are prioritising well-located, ESG-compliant offices that meet modern workplace standards while avoiding obsolete assets. In India, Global Capability Centres, tech companies, and domestic corporates together account for nearly 75% of office demand, reinforcing confidence in high-quality office stock.
Diversified Asset Interests: Living, Logistics, and Retail
Beyond offices, living formats—including rental housing, student accommodation, and co-living—account for 65% of investor interest globally, driven by favourable demographics and defensive income. Logistics and industrial assets appeal to 63% of investors, benefiting from e-commerce growth, supply chain shifts, and infrastructure expansion. Retail is also back on the radar, with 56% of investors planning allocations in dominant, experience-led shopping centres.
Partnerships and Operational Assets Gain Traction
Structured partnerships and joint ventures are key to India’s strategy, with 68% of investors open to collaborations representing USD 94 billion of planned investment. Operational real estate sectors such as data centres, healthcare, and infrastructure are emerging as areas of focus, reflecting global adoption of digital technologies, demographic trends, and public investment. India’s expanding infrastructure and rising demand across these sectors make partnerships crucial for scaling and managing complexity.
A Selective but Resilient Market Ahead
Global investors are increasingly selective, focusing on markets that offer confidence in values, liquidity, and exit prospects. Nick Braybrook, Global Head of Capital Markets at Knight Frank, states that the return of occupiers has drawn investors back to offices, while Victoria Ormond highlights the ongoing influence of interest rates and occupier demand. The next phase of investment is measured but resilient, with India well-positioned to capture long-term capital flows.
