It's Realty: Record $2.9 bn raised from 42 deals

India’s real estate sector is witnessing a phase of accelerated institutionalisation as investors, developers, and funds increase participation across platforms, assets, and capital market instruments, culminating in a record performance in September quarter with the highest-ever quarterly deal volume and value.

Heightened interest from both domestic and global institutions, with several large-scale mergers, acquisitions, and listings reflect deeper capital engagement and confidence in the sector’s stability and earnings potential.


The sector recorded a record-breaking 42 transactions valued at $2.9 billion during the quarter, the highest quarterly deal volume to date, showed Grant Thornton Bharat data. This included nine public market transactions with five initial public offers (IPOs) and four qualified institutional placements (QIPs), and 33 private transactions worth $1.8 billion, marking a sharp rebound in investor activity.

“The quarter marks a turning point for India’s real estate sector with strong performance across M&A, private equity, REIT and IPO activity. The surge in marquee transactions, rising investor appetite for income-yielding, institutional-grade assets and sustained capital market engagement reflect growing institutional depth and strong confidence in the sector’s resilience and growth potential,” said Shabala Shinde, Partner and Real Estate Leader, Grant Thornton Bharat.

Institutional appetite remained focused on income-generating commercial and retail assets, alongside growing activity in real estate technology and emerging platform structures.

“The shift marks India’s property market evolving into a more institutional and yield-driven ecosystem. Investors now prefer structured, income-generating opportunities backed by stronger governance, transparency, and regulatory clarity. With improved capital access and proptech driving efficiency and data-led decision-making, the sector is becoming more professional and accountable, setting the stage for sustainable, long-term growth,” said Chintan Sheth, CMD, Sheth Realty.

During the quarter, M&A activity reached 21 deals valued at $843 million, dominated by domestic transactions worth $838 million. The surge was led by marquee deals such as The Phoenix Mills’ acquisition of Island Star Mall Developers and strong institutional interest in operating assets. Mindspace REIT’s 100% acquisition of The Square marked its first third-party purchase since listing.

Private equity investments rebounded with 12 deals worth $859 million, up 71% in volume and 48% in value from the previous quarter. Commercial assets and real estate tech led inflows, with Prime Offices Fund’s $290 million investment in RMZ One Paramount among key deals.

On the public market side, five IPOs raised $805 million and four QIPs totalled $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 activity in residential development slowed. Real estate technology and consultancy segments saw notable increases in deal count and value.