India’s real estate sector witnessed a sharp rebound in the second quarter of 2026, with 39 deals worth USD 2.3 billion, as private equity investments surged and public market fundraising picked up, according to Grant Thornton Bharat’s latest Real Estate/REITs Dealtracker.
Deal values nearly triple as institutional capital returns to commercial real estate
Deal volumes rose 18% quarter-on-quarter from 33 transactions in Q1 to 39 in Q2, while overall deal values nearly tripled from USD 793 million to USD 2.3 billion.
The report attributed the increase to larger private equity transactions, robust domestic deal activity and the revival of IPOs and qualified institutional placements (QIPs).
Excluding IPOs and QIPs, the sector recorded 35 mergers and acquisitions (M&A) and private equity transactions worth USD 1.5 billion. Commercial real estate remained the preferred asset class for institutional investors, accounting for the bulk of investment activity.
“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,” said Bhavik Vora, Partner, Grant Thornton Bharat.
Record M&A activity led by domestic deals
M&A activity reached a record high during the quarter with 22 deals worth USD 367 million, accounting for 56% of total deal volumes. Domestic transactions represented nearly 95% of M&A activity, while inbound deals remained absent for the fifth consecutive quarter. Outbound activity revived with a single transaction.
The largest M&A transaction was L&T Realty Properties Ltd’s USD 121 million acquisition of a 20-acre land parcel from International Green Scapes Ltd. NDR Investment Trust completed two acquisitions worth USD 50 million, while Nexzone IT Infrastructures executed three acquisitions totalling USD 8 million.
Private equity drives high-value transactions
Private equity emerged as the largest contributor by value, with 13 deals worth USD 1.16 billion. Deal values jumped 153% sequentially, driven by four transactions exceeding USD 100 million, which together accounted for USD 970 million.
The biggest transaction of the quarter was Mindspace Business Parks REIT and 360 One Alternates Asset Management’s USD 323 million acquisition of Radial IT Park Ltd. Mindspace also acquired Sycamore Properties during the quarter, taking its total investments to USD 596 million.
IPOs and QIPs return to the market
Public market activity also rebounded after a muted first quarter. Two IPOs raised USD 381 million, while two QIPs garnered USD 401 million, taking total fundraising through public markets to USD 782 million. The Bagmane Prime Office REIT IPO led issuance during the quarter, while Brookfield India Real Estate Trust and Bagmane Prime Offices REIT drove QIP fundraising.
Commercial assets dominate investor interest
Among sub-sectors, commercial development led with 12 deals worth USD 997 million, accounting for 65% of the total deal value. Real estate operators recorded 13 transactions worth USD 299 million, while real estate technology attracted five deals worth USD 111 million, reflecting sustained investor interest in technology-enabled property platforms.
Residential development, however, remained subdued, with deal values declining 88% quarter-on-quarter to USD 22 million, indicating weaker investor appetite compared with commercial assets.
Grant Thornton Bharat said the strong performance reflects sustained institutional confidence in India’s commercial real estate market and expects quality income-generating assets to continue attracting capital in the coming quarters.
