Indian Real Estate Deals Decline 8% to USD 2.5 Billion in H1 2025: Grant Thornton Bharat
The Indian real estate sector witnessed deals worth USD 2.5 billion during the first half of 2025, reflecting an 8% annual decrease. However, the number of transactions, including Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs), increased to 45. This data, as reported by Grant Thornton Bharat, highlights a sector recalibrating for long-term strength and resilience.
Institutional capital continues to flow steadily into commercial platforms, reinforcing the asset class's resilience. The return of IPO and Small and Medium Enterprise Real Estate Investment Trust (SME REIT) activity, along with the anticipation of India's largest REIT, signals that capital markets are gearing up to play a larger role in driving real estate growth.
Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, noted that the data for the first half of 2025 reflects a sector preparing 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,' Shinde said.
During the second quarter of 2025, the sector recorded 17 transactions worth USD 1.3 billion, including IPOs and QIPs. This indicates a consistent flow of investment despite the overall decline in deal value. In the second half of 2025, the sector is well-positioned for a more mature, innovation-led cycle of investment.
The Indian real estate sector's ability to attract institutional capital and maintain a steady flow of deals, despite the decline in value, underscores its potential for future growth. As the sector continues to mature, it is expected to see more innovative investment strategies and a broader range of investment opportunities, particularly in commercial and residential segments.
Overall, the report by Grant Thornton Bharat provides valuable insights into the current state of the Indian real estate market and highlights the sector's resilience and potential for future growth.
