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India's real estate market registered a robust start in the first quarter of 2025, with 28 deals totalling USD 1.2 billion, according to Grant Thornton Bharat's latest 'Real Estate/REITs Dealtracker' report. The surge, despite subdued IPO and QIP activity, marked a 133% increase in deal volume and over five-fold growth in value compared to the same period last year. Private equity and venture capital played a dominant role, contributing 17 deals worth USD 1.05 billion, while 11 M&A transactions accounted for USD 137 million. Emerging SM REITs also gained traction during the quarter.
The Indian real estate sector saw a strong start to 2025, recording 28 transactions worth USD 1.2 billion during the January to March quarter, as highlighted in a report released earlier this week by Grant Thornton Bharat. The consultancy's 'Real Estate/REITs Dealtracker-Providing M&A and PE deal insights' revealed that private equity activity was the primary driver behind this growth. Advertisement
Compared to the corresponding quarter in 2024, deal volume surged by 133%, while deal value witnessed a more than five-fold increase, underscoring continued investor confidence even in the absence of significant IPO and QIP movements.
The report indicated that the quarter included 11 merger and acquisition (M&A) deals amounting to USD 137 million. Private equity and venture capital (PE/VC) activity contributed a larger share, with 17 deals totalling USD 1.05 billion.
However, capital markets remained subdued. There were no initial public offerings (IPOs) or qualified institutional placements (QIPs) during the quarter.
Shabala Shinde, Partner and Real Estate Leader at Grant Thornton Bharat, stated that the new year began with a noticeable rise in overall deal activity, reflecting investor enthusiasm. She noted that although deal volume in Q1 2025 rose by 47% compared to Q4 2024, deal value had actually dropped by over 51%, since the previous quarter was driven heavily by capital market-linked transactions such as IPOs and QIPs.
She further observed that small and medium REITs (SM REITs) continued to gain traction. With four new registrations and one listing recorded during the quarter, she believed this emerging segment is gradually expanding capital market access for a wider pool of developers and investors particularly those active in the commercial and retail asset space.
Although capital market routes like IPOs and QIPs remained inactive, the strength of PE and M&A activity signals renewed investor confidence and evolving preferences in real estate funding. With SM REITs expanding their presence, India's property sector appears poised for broader financial democratisation and deeper institutional engagement in the months ahead.
Source: PTI
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