India’s real estate sector recorded 39 deals worth $2.3 billion in the second quarter of 2026, with deal volumes rising 18% quarter-on-quarter (QoQ) and deal values nearly tripling from the previous quarter, according to Grant Thornton Bharat’s latest Real Estate/REITs Dealtracker report.
The sector has witnessed steady growth in deal activity over the past three quarters, driven by strong momentum in mergers and acquisitions (M&A) and private equity (PE) investments. M&A transactions accounted for 56% of the total deal count, followed by private equity at 34%, while initial public offerings (IPOs) and qualified institutional placements (QIPs) contributed 5% each.
In value terms, private equity emerged as the largest contributor, accounting for nearly half of the total deal value, indicating renewed institutional confidence despite global macroeconomic uncertainties.
Excluding IPOs and QIPs, the sector recorded 35 M&A and PE transactions worth $1.5 billion, with commercial real estate continuing to attract the bulk of institutional investments.
“The quarter reflects growing confidence among institutional investors in India’s commercial real estate market,” said Bhavik Vora, Partner, Grant Thornton Bharat. “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. Strategic acquisitions also indicate that investors are building long-term portfolios rather than chasing short-term opportunities,” he said.
M&A activity touched a record high during the quarter, with 22 deals worth $367 million. Domestic transactions accounted for nearly 95% of total M&A activity, highlighting sustained confidence in the local market.
Inbound deal activity remained subdued for the fifth consecutive quarter, while outbound M&A revived with one transaction.
The largest M&A deal was L&T Realty Properties Ltd’s acquisition of a 20-acre land parcel from International Green Scapes Ltd for $121 million. NDR Investment Trust completed two acquisitions worth $50 million, while Nexzone IT Infrastructures Pvt. Ltd. executed three acquisitions totalling $8 million, reflecting continued consolidation across the sector.
Private equity activity remained robust, with 13 deals worth $1.2 billion, as deal values surged 153% QoQ. The growth was driven by four transactions exceeding $100 million, with a combined value of $970 million.
The biggest transaction was Mindspace Business Parks REIT and 360 One Alternates Asset Management Ltd’s $323 million acquisition of a 100% stake in Radial IT Park Ltd, which owns International Tech Park (ITPC) Radial Road.
Mindspace Business Parks REIT was among the most active investors during the quarter, completing two investments worth a combined $596 million, underscoring sustained institutional demand for premium commercial assets.
Public market fundraising also rebounded in Q2, with two IPOs raising $381 million and two QIPs mobilising $401 million, taking the combined fundraising to $782 million.
The revival was led by the Bagmane Prime Office REIT IPO while Brookfield India Real Estate Trust and Bagmane Prime Offices REIT accounted for the QIP issuances, signalling continued investor appetite for listed real estate platforms.
Commercial real estate remained the largest investment destination, recording 12 deals worth $997 million, accounting for 65% of the total deal value.
Real estate operators registered 13 deals worth $299 million, with M&A accounting for 92% of transaction volumes, indicating ongoing sector consolidation.
Real estate technology attracted five deals worth $111 million, reflecting continued investor interest in technology-enabled property platforms.
In contrast, residential real estate saw a sharp slump, with deal values plunging 88% QoQ to $22 million amid weaker investor activity.