Grant Thornton Bharat Q2 2025 Real Estate Dealtracker: Market Cooling Amidst Institutional Focus
The Q2 2025 Grant Thornton Bharat Real Estate Dealtracker reveals a slowdown in deal activity, with a 54% decline in volumes and a 35% drop in values. However, the return of capital markets and a focus on commercial assets signal cautious optimism.
Real EstateDealtrackerInstitutional InvestmentCommercial AssetsCapital MarketsReal Estate NewsJul 16, 2025
Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, commented, “H1 reflects a sector recalibrating for long-term strength. While overall deal values moderated, institutional capital continues to flow steadily into commercial platforms, reinforcing the asset class’s resilience. The return of IPO and SME REIT activity, alongside anticipation of India’s largest REIT, signals that capital markets are gearing up to play a larger role in driving real estate growth.”
As we move into H2, the sector is well-positioned for a more mature, innovation-led cycle of investment. The mergers and acquisitions (M&A) landscape witnessed a decline in volumes in Q2, falling 45% from the previous quarter to just 6—the lowest since Q2 2024. However, deal values rebounded, rising 42% quarter-on-quarter to USD 195 million, driven primarily by Max Estates Ltd’s USD 161 million acquisition of Boulevard Projects Pvt Ltd under a resolution plan. While inbound and outbound cross-border activity remained muted, the quarter reflected strong domestic consolidation with a focus on larger, strategic transactions. Compared to Q2 2024, volumes nearly halved, but values surged 60%, signalling a pivot toward fewer, high-value deals. Commercial development remained the dominant sub-sector, though activity moderated from Q1 highs. Residential development maintained deal flow momentum but saw value corrections, pointing to a preference for mid-sized assets. Real estate tech activity slowed, reflecting a pause in innovation-led dealmaking after a strong Q1. Notably, cross-sector M&A emerged as a theme, with players from textiles and media entering the commercial real estate space.
The private equity (PE) landscape also slowed in Q2 2025, with deal volumes plunging 59% to just 7 transactions and values declining 45% to USD 580 million. This marks the sector’s second-lowest quarterly volume since Q2 2023. Despite the drop, the quarter closed on a high note with a USD 562 million worth investment recorded in June, led by Blackstone’s USD 378 million acquisition of South City Projects Ltd—highlighting sustained institutional interest in commercial development assets. Commercial platforms continued to dominate capital inflows, reinforcing the trend toward income-generating, operationally stable properties. In contrast, real estate tech witnessed a marked pullback, with deal count falling from six in Q1 to just two this quarter, reflecting a pause in momentum. However, Qatar Development Bank’s investment in Alt DRX—a digital platform for tokenised real estate—signals early interest in next-gen retail-focused property investments.
Initial public offering (IPO) and qualified institution placements (QIP) activity picked up in Q2, with two IPOs raising USD 243 million and two QIPs totalling USD 245 million. This marked a significant turnaround from Q1’s inactivity, reflecting a gradual return of investor confidence, especially in income-generating and platform-led real estate models. Kalpataru Limited stood out by raising capital through both IPO and QIP routes, securing a total of USD 268 million. The Small and Medium Real Estate Investment Trusts (SM REITs) segment also gained momentum, with fresh registrations signalling broader public market access for mid-sized developers. These developments point to a cautious but steady re-engagement with listed instruments, setting the stage for deeper capital market integration in H2.
Frequently Asked Questions
What is the Grant Thornton Bharat Real Estate Q2 2025 Dealtracker?
The Grant Thornton Bharat Real Estate Q2 2025 Dealtracker is a report that analyzes the performance and trends in India’s real estate sector, focusing on deal activity, volumes, and values for the second quarter of 2025.
How did deal volumes and values change in Q2 2025 compared to Q1 2025?
Deal volumes fell by 54% and values declined by 35% quarter-on-quarter in Q2 2025 compared to Q1 2025.
What is the significance of the return of capital markets in Q2 2025?
The return of capital markets in Q2 2025, with two IPOs raising USD 243 million and two QIPs totalling USD 245 million, signals a gradual return of investor confidence and a shift toward income-generating and platform-led real estate models.
Which sub-sector dominated the real estate investment in Q2 2025?
Commercial development dominated the real estate investment in Q2 2025, accounting for 62% of total investment, as institutional capital targeted resilient, income-generating assets.
What is the outlook for the real estate sector in the second half of 2025?
The outlook for the real estate sector in the second half of 2025 is cautiously optimistic, with a focus on mature, innovation-led cycles of investment, and an expectation of deeper capital market integration.
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