When US fund house Blackstone recently sold a stake in listed REIT Knowledge Realty Trust through an offer for sale, key buyers included PPFAS Asset Management, which manages Parag Parikh Mutual Fund, and 360 ONE Asset Management.
In April, global investor CapitaLand Investment sold a business park in Chennai to K Raheja-sponsored Mindspace Business Parks REIT and 360 ONE Asset.
Amid declining foreign capital inflows and favourable valuations, domestic investors have stepped up their activity in commercial real estate.
360 ONE Asset, Nuvama and Cushman & Wakefield Management, ICICI Prudential Asset Management Company and Edelweiss Alternatives (EAAA), among others, have acquired assets worth more than Rs 15,000 crore over the past 18-24 months.
Listed REITs have also been active acquirers. As of May 2026, they held a combined gross asset value (GAV) of about Rs 3.13 lakh crore in Grade-A commercial and retail assets—almost double the level at the beginning of FY25—indicating a strong acquisition-led expansion strategy, experts said.
Beyond stable rental yields and capital appreciation, India’s cost-efficient talent pool is driving robust tenant demand, particularly from global capability centres (GCCs) and multinational companies, said Rohit Rathi, principal, real estate business, ICICI Prudential AMC.
Commercial real estate offers investors a hybrid opportunity, combining the equity-like upside of capital appreciation with fixed-income-like rental distributions, Rathi said.
“The slowdown from some global investors has opened up attractive acquisition opportunities, potentially allowing players like us to step in and secure assets at more favourable valuations and terms,” he said.
ICICI Prudential AMC has assets under management of Rs 5,000 crore in commercial properties and has closed eight deals over the past 18 months, he said.
Foreign capital inflows into Indian real estate have fallen to nearly a third of their FY21 peak, as higher global interest rates, tighter financial conditions and geopolitical uncertainty have reduced the appeal of Indian property to overseas investors.
Inflows fell to Rs 2,208 crore in FY26 from Rs 6,043 crore in FY21, according to Anarock Capital. They declined 29% from Rs 3,098 crore in FY25.
According to Venture Intelligence data, Blackstone made four investments in commercial properties year to date in 2026, while Singapore-based GIC and Canadian investor Brookfield, both traditionally active in the segment, made none.
Vivek Rathi, national director of research at Knight Frank India, said domestic investors have cushioned the moderation in global capital inflows.
“Investments by domestic investors have increased in recent quarters and will continue to grow as interest rates go up,” he said. As money becomes more expensive in the US, he added, it is less likely to flow into riskier opportunities in developing economies.
He, however, sounded a note of caution. “For a short period, they [domestic investors] have filled the gap. But if they have to do this meaningfully in the long run, they need access to abundant sources of capital at cheaper rates,” he said.
Deepak Aswani, CIO and head of real assets at 360 ONE Asset, said global investors have not lost interest in India but have become more selective. Higher US bond yields have narrowed the premium for investing in the country, while a weaker rupee has made hedging costlier, he said.
“That has opened the door for domestic capital, both as buyers and as partners, because global sponsors increasingly want a strong Indian co-investor,” Aswani said.
In 360 ONE Asset’s view, high-quality office assets and large portfolios offer a favourable risk-reward proposition.
360 ONE Asset oversees $1 billion across its real assets platform. Over the past two years, it has invested across Chennai, Bengaluru and Pune and in the pre-IPO rounds of office REITs, Aswani said.
Chanakya Chakravarti, a senior corporate adviser, said domestic investors increasingly view real estate as a formalised asset class as secondary markets deepen and the number of quality investors and developers grows.
Demand for and supply of Grade-A properties have both increased, enhancing the segment’s attractiveness, he said.
Yields of 6.5-7%, coupled with rental escalations, offer an attractive return profile, Chakravarti said.
An investment of $150 million to $300 million is now conceivable for a domestic investor or consortium, he said. With a debt-to-equity ratio of 1:1, the investment size could rise to $500 million.
Domestic investors are also upbeat about exit opportunities. Gaurav Puri, chief investment officer at Nuvama and Cushman & Wakefield Management (NCW), said the market for high-quality assets is highly liquid, both through listed REITs and private markets, where multiple buyers are available.
“We would evaluate the appropriate route for our investments at the relevant point in its lifecycle. At this stage, we see significant liquidity for multiple exit routes, and we continue to actively track the same,” he said.
NCW’s Prime Offices Fund achieved its final close at Rs 4,000 crore in 2026. Over the past year, it completed four transactions across Delhi, Chennai, Pune and Mumbai. The invested assets have a combined value of more than Rs 5,500 crore on a GAV basis.
The fund expects to build a portfolio with a GAV of more than Rs 10,000 crore once fully stabilised.
The game plan
Rs 15,000 crore-plus: Assets acquired by domestic investors including 360 ONE Asset, Nuvama and Cushman & Wakefield Management and ICICI Prudential AMC over the past 18-24 months
# Rs 3.13 lakh crire: Combined GAV of commercial and retail assets held by listed REITs as of May 2026
# Rs 5,000 crore: ICICI Prudential AMC’s AUM in commercial properties
# Rs 2,500 crore-plus: Investments made by 360 ONE Asset in multiple office parks over the past two years
# Rs 4,000 crore: Final close achieved by NCW’s Prime Offices Fund in 2026