Indian Real Estate Deals Decline 8% to USD 2.5 Billion in H1 2025: Grant Thornton Bharat
The Indian real estate sector saw a decline in deal value by 8% to USD 2.5 billion in the first half of 2025, according to a report by Grant Thornton Bharat. Despite the drop in value, the number of deals increased, indicating a sector preparing for a more mature investment cycle.
Indian Real EstateGrant Thornton BharatReal Estate DealsIpo And QipInstitutional CapitalReal Estate NewsJul 15, 2025
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.
Frequently Asked Questions
What was the total value of real estate deals in the first half of 2025?
The total value of real estate deals in the first half of 2025 was USD 2.5 billion.
How did the number of deals change in the first half of 2025 compared to the same period in 2024?
The number of deals increased from 40 in H1 2024 to 45 in H1 2025.
What types of transactions are included in the real estate deals?
The real estate deals include Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs).
What is the significance of the continued flow of institutional capital into commercial platforms?
The continued flow of institutional capital into commercial platforms reinforces the asset class's resilience and indicates a strong foundation for future growth.
What does the report by Grant Thornton Bharat suggest about the future of the Indian real estate sector?
The report suggests that the Indian real estate sector is well-positioned for a more mature, innovation-led cycle of investment, with the expectation of more innovative investment strategies and a broader range of investment opportunities.
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