Foreign investment in Indian real estate saw a significant decline of 75% in the first quarter of 2026, totaling $400 million. This drop is attributed to the ongoing conflict in West Asia and broader global economic uncertainties. According to data from Colliers India, total institutional investments in real estate decreased by 61%, down to $1.6 billion from $4.2 billion in the previous quarter. Domestic investors contributed $1.2 billion, making up three-fourths of the inflows, while foreign investors accounted for only $400 million. Badal Yagnik, CEO of Colliers India, noted that despite the decline in foreign investments, domestic demand remains strong across various asset classes. He anticipates that while global investors may take a cautious stance due to trade and commodity market volatilities, India's favorable demographics and consumption-driven economy will maintain its attractiveness in the Asia-Pacific region. Institutional investments in office properties fell sharply to $821.1 million, down from $3.05 billion in the previous quarter, reflecting the cautious sentiment among global investors.