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Investor sentiment in real estate continues to shift toward operationally resilient and income-generating assets, with commercial platforms drawing sustained interest from institutional capital. Domestic consolidation remains a key driver of M&A, while capital markets show early signs of renewed engagement. The Q2 2025 edition of our Real Estate/REITs Dealtracker highlights selective capital deployment, a preference for fewer but larger transactions, and a measured return of IPO and QIP activity. It provides a comprehensive view of deal trends across sub-sectors, offering strategic insights into how private equity, M&A consolidation, and public market instruments are shaping the sector’s trajectory this quarter.
In Q2 2025, the Indian real estate sector marked a significant drop in volumes by 39% and a slight increase in values by 6% over the last quarter. M&A and PE volumes dropped, while M&A deal values increased. IPO and QIP experienced recovery with two deals each after muted activity last quarter.
M&A activity in Q2 2025 declined sharply in volume, falling by 45% from Q1 to just 6 deals. Despite this, deal value rose by 42% to USD 195 million, surpassing Q1 2025. A key driver was Maz Estates Limited’s USD 161 million acquisition of Boulevard Projects Pvt Ltd under a resolution plan.
PE witnessed a sharp slowdown this quarter, marking the second-lowest quarterly volumes since Q2 2023, with 7 deals totalling USD 580 million, down from 17 deals worth USD 1.1 billion in Q1 2025. While commercial assets dominated, real estate tech saw selective interest.
Following a muted activity last quarter, IPO and QIP showed signs of recovery with two deals each worth USD 243 million and USD 245 million, respectively. This mirrors the cautious optimism returning to capital markets, albeit selectively. Notably, Kalpataru Limited raised funds through both IPO and QIP, securing a combined total of USD 268 million.
