The Indian real estate sector recorded transactions totalling USD 2.5 billion during the first half of 2025, marking an 8% decline in value compared to the same period in 2024, according to Grant Thornton Bharat. While deal volume rose from 40 to 45 transactions, the total value dipped from USD 2.7 billion. The deals included IPOs and Qualified Institutional Placements, with institutional interest in commercial platforms remaining strong.
The Indian real estate sector recorded a total of 45 transactions amounting to USD 2.5 billion during the first half of 2025, as reported by Grant Thornton Bharat in its 'Real Estate Q2 2025 Dealtracker'. Although this marked an increase in the number of deals from 40 in the first half of 2024, the overall transaction value saw an 8% annual decline, down from USD 2.7 billion. The reported deals comprised Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs).
Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, observed that the first-half data pointed to a sector undergoing recalibration aimed at long-term robustness. She mentioned that despite the moderation in deal values, institutional capital remained consistent, particularly in the commercial real estate segment. According to her, this trend highlighted the asset class's enduring appeal.
Shinde further noted a resurgence in capital market participation, citing the reappearance of IPOs and SME Real Estate Investment Trust (REIT) activity. She added that the anticipated launch of India's largest REIT indicated that capital markets were preparing for an expanded role in the sector's future.
During the second quarter of 2025, 17 transactions were recorded with a combined value of USD 1.3 billion, which also included IPOs and QIPs.
The modest drop in overall deal value, amid rising volumes and renewed IPO and REIT activity, suggests a sector realigning with long-term fundamentals. The outlook for the remainder of 2025 appears to be centred on innovation, capital market integration, and sustained institutional interest-factors likely to define the next growth cycle.
Source - PTI
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