For more updates follow Grant Thornton Bharat on WhatsApp
A stable start marked deal activity in the Indian real estate sector, with investors favouring measured capital deployment amid a relatively uncertain macro environment. Domestic activity continued to dominate, while private equity remained a key driver of capital inflows with a selective focus on commercial assets and income-generating platforms.
The Q1 2026 edition of the Real Estate/REITs Dealtracker analyses deal momentum across sub-sectors, highlighting consolidation-led transactions, preference for yield visibility, and the growing maturity of the REIT ecosystem in India. Commercial development led transaction activity, followed by real estate operators and residential development, indicating a tilt towards annuity-driven opportunities.
Q1 2026 recorded 32 deals totaling USD 763 million, marking the lowest quarterly values since Q4 2023. M&A led deal activity in this quarter accounting for 59% of overall volumes, while PE contributed the rest, however, PE dominated value share at 60% reflecting relatively larger deal sizes.
M&A activity comprised 19 domestic deals amounting to USD 305 million dominated by domestic consolidation. The absence of inbound and outbound M&A for the second consecutive quarter highlights a domestically driven market, with Indian strategic and financial investors playing a dominant role amid global uncertainty.
PE recorded the highest quarterly volumes in last one year, yet values declined by 71% from the last quarter due to one outlier mega deals. Q1 2026 marks a return to normalised ticket sizes, with PE capital being deployed in multiple smaller bets rather than a single large exposure.
This quarter primary market activity has remained completely muted with no IPO or QIP transactions recorded. In contrast, the previous quarter had shown two IPOs and two QIPs raising approximately USD 916 million in total across both routes.
The real estate sector demonstrated renewed momentum in Q3 2025, with notable activity across mergers and acquisitions, private equity, and capital markets. Institutional capital remained concentrated on income-generating commercial assets, supported by regulatory developments and increased access to domestic funding.
The Q2 2025 edition of #GTBharat's Real Estate/REITs Dealtracker highlights selective capital deployment, a preference for fewer but larger transactions, and a measured return of IPO and QIP activity.
The Indian real estate sector commenced 2025 with a marked resurgence in transaction activity, reflecting sustained investor confidence and strategic alignment across asset classes.
