Institutional investments in India's real estate sector remained resilient during Q2 2026, reaching $1.9 billion, a 16 per cent increase quarter-on-quarter (QoQ), according to Cushman and Wakefield's Q2 2026 Capital Marketbeat report. The report said that the rise in investments was led by Global Capability Centres (GCCs) and data centres.Institutional investments in India's real estate sector remained resilient during Q2 2026, reaching $1.9 billion, a 16 per cent increase quarter-on-quarter (QoQ), according to Cushman and Wakefield's Q2 2026 Capital Marketbeat report. (Picture for representational purposes only) (Gemini Generated Photo )According to the report, while investment activity moderated by seven per cent year-on year (YoY), the overall market continued to see consistent deployment, supported by strong participation from domestic investors and a sustained preference for consistent income-generating assets.The report stated that for the first half of 2026, institutional investments totalled $3.5 billion, marking a six per cent increase over H1 2025. This reflects continued confidence in India's long-term real estate fundamentals despite global macroeconomic uncertainties.Also Read: More malls to come up in Delhi than Gurugram and Noida over the next three yearsOffice sector led by GCCs dominate institutional investmentAccording to the report, the office sector continued to dominate institutional investment activity in Q2 2026, attracting nearly $1 billion and accounting for 51 per cent of total investments. This marked the fifth consecutive quarter of office assets leading India's real estate investment landscape. The sustained investor preference underscores continued confidence in the office sector’s long-term fundamentals and its ability to generate stable income.Investor interest in office real estate continues to be underpinned by strong occupier demand, particularly from GCCs, tightening vacancy levels across major office markets, and continued rental growth in premium micro-markets. Limited availability of investment-grade assets has further reinforced the sector's attractiveness among institutional investors.Also Read: Flexible office space in India to cross 100 mn sq ft by 2026: Cushman & WakefieldData centres stood secondThe report said that data centres emerged as the second-largest recipient of institutional capital in Q2 2026, accounting for 40 per cent of total investments. The sector's growing share reflects increasing investor interest in digital infrastructure assets, supported by rising demand driven by rapid AI adoption, cloud expansion and data localisation requirements.Domestic capital continues to anchor market activityDomestic institutions maintained their dominant position in investment activity, accounting for 54 per cent of total investments in Q2 2026, compared with 46 per cent by foreign investors, the report said. For H1 2026, investments by domestic institutions stood at $2.2 billion, accounting for 64 per cent of total investment activity, compared to a 43 per cent share during H1 2025. Foreign investments totalled $1.3 billion, representing the remaining 36 per cent, down from 57 per cent in the corresponding period last year.“Capital allocation is becoming increasingly differentiated across asset classes. While office continues to attract a broad spectrum of investors owing to its maturity, liquidity and stable income profile, we are also seeing growing interest in the data centre segment as investors seek to capitalise on India's expanding digital infrastructure ecosystem. This diversification of capital is contributing to a deeper and more resilient investment landscape," said Somy Thomas, Executive Managing Director, Capital Markets, Cushman and Wakefield.Also Read: STT Global Data Centres acquires Navi Mumbai land for ₹282 crore to develop data centre"At the same time, investors are increasingly pursuing portfolio and multi-city opportunities to achieve greater scale and diversification. With domestic fundraising remaining healthy and significant capital available for deployment, we expect investment activity to remain resilient through the second half of 2026, with domestic investors continuing to anchor market momentum," Thomas said.