Foreign investment in Indian real estate saw a dramatic decline of 75%, falling to $400 million during the January-March 2026 period, as reported by the real estate consultancy Colliers India. This drop is attributed to global economic uncertainties and the ongoing conflict in West Asia. Overall institutional investments in the sector also fell significantly, decreasing by 61% from $4.2 billion in the previous quarter to $1.6 billion. Domestic investors, however, demonstrated resilience, contributing $1.2 billion to the total inflows, which accounted for three-fourths of the total investment during this period. Colliers' CEO, Badal Yagnik, noted that while foreign investors are likely to remain cautious due to market volatilities, the domestic market's strong demand across various asset classes could help stabilize the situation. Notably, investments in office properties plummeted to $821.1 million, down from $3.05 billion in the prior quarter. Despite the current downturn, Colliers expects that India's favorable demographics and consumption-driven economy will maintain its attractiveness for investors in the Asia-Pacific region.