India's Real Estate Sector Sees 32 M&A and PE Deals in Q1 2026: Grant Thornton Report
CHENNAI: India’s real estate sector recorded a total of 32 mergers & acquisitions and private equity deals worth US$763 million in the January to March period in 2026 against 26 in Q4 2025, a rise of 23% quarter-on-quarter.
Though this quarter reported the second-highest M&A and PE deals in the sector, the overall values have seen a sharp correction from US$2,083 million in Q4 2025, which is a 63% decline, and US$1,702 million in Q3 2025. This is primarily due to the absence of large-ticket transactions and a clear tilt towards smaller and mid-sized deals, according to the Grant Thornton report.
The M&A activity strengthened, with deal volumes rising 27% quarter-on-quarter to 19 transactions, although deal values fell 38% to US$305 million. This indicates a continued focus on mid-market and consolidation-led transactions. Activity remained entirely domestic, with no inbound or outbound deals recorded during the quarter for the second consecutive quarter.
A key transaction was RSVM Hospitality Private Limited’s US$55 million acquisition of Neterwala Group’s 18.6-acre land parcel. Prozone Realty Ltd. was particularly active, completing three acquisitions totaling US$32 million.
On a year-on-year basis, M&A activity increased from 11 deals in Q1 2025 to 19 deals in Q1 2026, while values rose from $137 million to $305 million, reflecting higher transaction activity despite moderation in deal sizes.
Private equity recorded 13 deals (up 18% quarter-on-quarter), while values declined sharply by 71% to $458 million, marking the lowest quarterly values since Q4 2024. The steep drop in PE values following Q4 2025 highlights that the previous quarter was an outlier driven by a single mega transaction. This also resulted in a substantial decrease in average deal size from US$80 million to $23.8 million.
Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, said, “Investment trends indicate a strong preference for commercial assets, particularly office and retail platforms, supported by yield visibility and stable cash flows, while REIT-led transactions continue to reinforce institutional confidence in high-quality, income-generating assets.”
“The deal environment remains resilient, though investors are adopting a more selective approach, prioritizing asset-level performance and execution certainty amid ongoing macro and geopolitical uncertainties,” Shinde added.
