The Indian real estate sector is witnessing a phase of accelerated institutionalization as investors, developers and funds increase their participation across platforms, assets and capital market instruments, culminating in a record performance in the September quarter with the highest ever quarterly deal volume and value.
The increased interest from both domestic and global institutions, with several large-scale mergers, acquisitions and listings, reflects deeper capital commitment and confidence in the sector’s stability and profit potential.
The industry recorded a record 42 transactions worth $2.9 billion during the quarter, the highest quarterly deal volume yet, according to Grant Thornton Bharat data. This included nine public market transactions with five initial public offerings (IPOs) and four qualified institutional placements (QIPs), and 33 private transactions worth $1.8 billion, marking a sharp recovery in investor activity.
“The quarter marks an inflection point for the Indian real estate sector with strong performance across M&A, private equity, REIT and IPO activity. The surge in the number of large transactions, rising investor appetite for income yields, institutional quality assets and continued involvement in the capital market reflect the growing institutional depth and strong confidence in the resilience and growth potential of the sector,” said Shabala Shinde, partner and real estate leader at Grant Thornton. Bharat.
Institutional interest continued to focus on income-generating commercial and retail assets, alongside growing activity in real estate technology and emerging platform structures.
“This shift marks the evolution of the Indian real estate market towards a more institutional and returns-driven ecosystem. Investors now prefer structured, income-generating opportunities, backed by stronger governance, transparency and regulatory clarity. With improved access to capital and proptech driving efficiency and data-driven decision-making, the sector is becoming more professional and responsible, paving the way for long-term sustainable growth,” said Chintan Sheth, CMD, Sheth Real Estate.
During the quarter, M&A activity reached 21 deals worth $843 million, dominated by domestic transactions worth $838 million. The increase was driven by major deals such as The Phoenix Mills’ acquisition of Island Star Mall Developers and strong institutional interest in assets. Mindspace REIT’s 100% acquisition of The Square was its first acquisition by a third party since its listing.
Private equity investments rebounded with twelve deals worth $859 million, up 71% in volume and 48% in value from the previous quarter. Commercial assets and real estate technology led the inflows, with Prime Offices Fund’s $290 million investment in RMZ One Paramount one of the key deals.
On the public market side, five IPOs raised $805 million and four QIPs raised a total of $344 million. Knowledge Realty Trust’s $547 million IPO contributed 68% of total fundraising.
Real estate operators and commercial developers accounted for 70% of deal volume and 91% of value, while residential construction activity slowed. The real estate technology and consultancy segments saw a notable increase in the number of deals and their value.
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