# Domestic investors boost Indian commercial real estate

> Domestic investors are acquiring over Rs 15,000 crore in Indian commercial real estate assets as foreign inflows decline.
- Title: Domestic investors boost Indian commercial real estate
- Summary: Domestic investors are acquiring over Rs 15,000 crore in Indian commercial real estate assets as foreign inflows decline. Domestic investors have acquired…
- Keywords: domestic investors, commercial real estate, india, reit, rs 15000 crore, foreign capital inflows, real estate assets, indian real estate, business, money, news, Domestic
- Source: Financialexpress — https://financialexpress.com/business/news/domestic-investors-up-the-ante-in-commercial-realty/4353356
- Author: Raghavendra Kamath
- Published: 2026-10-04T11:46:27+00:00
- Read time: 1 min
- Topics: domestic investors, commercial real estate, india, reit, rs 15000 crore, foreign capital inflows, real estate assets, indian real estate, business, money, news
## Blackstone stake sale
Blackstone sold a stake in Knowledge Realty Trust, with PPFAS Asset Management and 360 ONE Asset Management as key buyers.
## Domestic activity surge
Domestic investors acquired assets worth more than Rs 15,000 crore over the past 18-24 months.
## REITs expand holdings
Listed REITs held a combined gross asset value of Rs 3.13 lakh crore in Grade-A assets as of May 2026.
## Rental demand growth
India’s cost-efficient talent pool drives robust tenant demand from global capability centres and multinationals.
## Hybrid investment appeal
Commercial real estate offers equity-like upside with fixed-income-like rental distributions.
## Rathi on acquisition opportunities
Rathi noted global investor slowdown has opened attractive acquisition opportunities for domestic players.

> 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.
## Foreign inflows decline
Foreign capital inflows into Indian real estate fell to Rs 2,208 crore in FY26 from Rs 6,043 crore in FY21.
## Domestic cushioning impact
Domestic investors have cushioned moderation in global capital inflows as interest rates rise.

> Investments by domestic investors have increased in recent quarters and will continue to grow as interest rates go up.
## Long-term capital needs
Domestic investors need access to abundant capital at cheaper rates for long-term growth.

> For a short period, they 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.
## Key takeaway

Domestic investors have acquired more than Rs 15,000 crore in Indian commercial real estate assets over 18-24 months amid falling foreign capital inflows.