Commercial real estate anchors India’s property deals in April–June

India’s real estate sector recorded 13 transactions worth $775 million in the second quarter of 2025. This marks a decline of 54% in volume and 35% in value compared to the previous quarter, showed a Grant Thornton Bharat study.

Commercial development accounted for 38% of the sector’s deal volume and 62% of its total value, with $480 million across five deals. Residential development and real estate tech contributed 23% and 15% of volumes, but only 10% and 5% of deal values, respectively.

As of the end of June, commercial assets continued to anchor deal activity while capital markets showed tentative signs of recovery through IPOs and smaller Real Estate Investment Trust (REIT) platforms.


“While private equity activity has moderated, investments like Mitsubishi, Sumitomo, and Hines in Kanakia and HDFC in Eldeco signal renewed institutional confidence in formal, scalable platforms. The capital shift into residential across metros and tier 2 cities reflects sectoral momentum—spanning housing, REIT-grade commercial, and tech-led models—driven by governance alignment and long-term capital,” said Shabala Shinde, Partner and Real Estate Industry Leader, Grant Thornton Bharat.

Of total investments, private equity contributed $580 million through seven deals, led by Blackstone’s $378 million acquisition of South City Mall in Kolkata. Other significant private equity transactions included Prime Offices Fund’s $87 million investment in Prius Platinum in South Delhi, IFC’s $50 million in Birla Estates, Lighthouse Funds’ $35 million in Knest Manufacturers, and Arnya Realestates Fund’s $15 million in Uniqus.
Merger & Acquisition activity stood at six deals worth $195 million, up 42% in value but down 45% in volume from the previous quarter.

The market witnessed a notable return of capital markets. Initial Public Offers (IPOs) and Qualified Institutional Placement (QIP) activity recovered with two deals each, raising $243 million and $245 million, respectively.