India’s real estate sector had a stable beginning in 2026, recording 32 deals valued at $763 million in the first quarter. Despite a decrease in total deal value due to the absence of large transactions, deal volumes, including IPO and QIP activity, increased from 26 to 32. This rise of about 14% from the previous year indicated a steady momentum in the sector.
The shift towards smaller and mid-sized transactions was evident as activity rose while values declined. The report from Grant Thornton Bharat highlighted a clear move towards more measured capital deployment amid an uncertain macro environment. M&A activity, with 19 deals, saw a volume increase, although values dropped sharply to $305 million due to the lack of large transactions.
The quarter was characterized by mid-market and consolidation-led deals, with domestic activity taking the lead. Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, noted a preference for commercial assets, especially office and retail platforms, supported by stable cash flows. The quarter also saw a rise in PE/VC activity, recording 13 deals worth $458 million, with a focus on residential growth and technology adoption.
Investors are adopting a more selective approach, prioritizing asset-level performance and execution certainty amid ongoing macro and geopolitical uncertainties. The overall deal environment remained resilient, with a shift towards mid-sized and income-generating assets, backed by private equity as a key source of capital.
