Realty deal values nearly triple to $2.3 billion in Q2 on robust PE, public market activity

Mumbai: India’s real estate sector witnessed a sharp rebound in deal activity during the April-June quarter, with transaction values nearly tripling sequentially to $2.3 billion on the back of robust private equity investments and a revival in capital market activity.

The sector recorded 39 transactions during the second quarter of 2026, up 18% from the preceding quarter, continuing a three-quarter streak of rising deal activity. Mergers and acquisitions (M&A) accounted for 56% of total transactions, followed by private equity (PE) deals at 34%, while initial public offerings (IPOs) and qualified institutional placements (QIPs) contributed 5% each, showed Grant Thornton Bharat data.

Excluding IPOs and QIPs, the market recorded 35 M&A and PE transactions worth $1.5 billion, with commercial real estate continuing to attract the bulk of institutional capital.


Private equity emerged as the largest contributor by value, accounting for nearly half of the total deal value during the quarter. Private equity activity remained strong with 13 transactions worth $1.2 billion, a 153% increase in value over the previous quarter. Four transactions exceeding $100 million together accounted for $970 million, underscoring investors’ preference for large, income-generating commercial assets.

“The quarter reflects growing confidence among institutional investors in India's commercial real estate market. Capital is increasingly flowing towards high-quality, income-generating assets, as reflected in the sharp increase in private equity investments and the revival in REIT and capital market activity. At the same time, strategic acquisitions continue to reshape the market, signalling that investors are looking beyond short-term opportunities to build long-term portfolios,” said Bhavik Vora, Partner, Grant Thornton Bharat.

He expects institutional capital to remain the key driver of real estate deal activity as demand for quality commercial assets continues to strengthen.

The largest PE transaction during the quarter was Mindspace Business Parks REIT and 360 One Alternates Asset Management’s $323 million acquisition of a 100% stake in Radial IT Park, which owns the International Tech Park-ITPC Radial Road. Mindspace also completed another investment during the quarter, taking its total investments to $596 million.

M&A activity reached a record high, with 22 deals worth $367 million. Domestic transactions accounted for nearly 95% of M&A activity, while inbound acquisitions remained muted for the fifth consecutive quarter. L&T Realty Properties’ $121 million acquisition of a 20-acre land parcel from International Green Scapes was the largest M&A transaction.

Public market fundraising also rebounded, with two IPOs raising $381 million and two QIPs mobilising $401 million, taking the total to $782 million. The Bagmane Prime Office REIT IPO led primary market activity, while Brookfield India Real Estate Trust and Bagmane Prime Offices REIT drove QIP fundraising.

Commercial development remained the most active segment, accounting for 12 deals worth $997 million, or 65% of total deal value. Real estate operators recorded 13 deals worth $299 million, while real estate technology attracted five transactions worth $111 million. In contrast, residential development saw deal values plunge 88% sequentially to $22 million, reflecting weaker investor interest in the segment.