By Proptechbuzz
By Ravi Kumar
India’s real estate market saw significant momentum during July–September 2025, as institutional investors increased their participation across mergers and acquisitions, private equity, and public listings. The quarter registered 42 transactions worth $2.9 billion — the highest investment value achieved in a three-month period to date. According to new data from Grant Thornton Bharat, the sector continues to shift toward stronger governance and income-led assets, supporting a more transparent market.
The period marked a recovery in deal-making after earlier consolidation. Grant Thornton Bharat recorded nine public market deals, including five IPOs and four qualified institutional placements (QIPs), along with 33 private transactions valued at $1.8 billion.
“This quarter marks a turning point for India’s real estate sector, showing robust performance across M&A, private equity, REIT, and IPO segments,” said Shabala Shinde, Partner and Real Estate Leader at Grant Thornton Bharat. “The growth in marquee transactions and investor appetite for income-generating, institutional-grade assets reflects the sector’s depth and resilience.”
Analysts link the improvement to clearer regulatory frameworks and a more stable revenue outlook for developers and asset owners.
Domestic investors led 21 M&A deals worth $843 million, showing growing internal market strength. Prominent examples include The Phoenix Mills Ltd acquiring Island Star Mall Developers to expand its retail footprint. Mindspace REIT also completed its first third-party acquisition of The Square, signalling a more active REIT environment.
REITs, backed by predictable yields, now attract institutional capital toward high-quality commercial and retail properties. In addition, private equity participation increased with 12 deals worth $859 million. That represents a 71% rise in deal volume and 48% growth in value compared with the previous quarter.
Prime Offices Fund’s $290 million investment in RMZ One Paramount illustrated continued confidence in office real estate, even as hybrid working evolves. Investors are primarily targeting Grade-A assets in established business hubs like Bengaluru, Pune, and Gurugram.
Public listings again became a notable funding route. Five IPOs raised $805 million, while four QIPs brought in another $344 million. Knowledge Realty Trust accounted for a major share, raising $547 million in its IPO.
Chintan Sheth, CMD of Sheth Realty, noted, “India’s property market is clearly transitioning toward an institutional and yield-driven model. Investors now prefer structured, income-generating opportunities backed by better governance, transparency, and regulatory clarity. Proptech adoption and improved capital access are making the sector more efficient, data-driven, and accountable.”
As a result, interest is increasing in commercial and retail assets offering consistent revenue. Deal activity in real estate technology and consulting is also rising, suggesting broader ecosystem development.
Commercial assets and REITs remained dominant investment categories. However, residential real estate experienced slower capital inflows. Developers suggest that ongoing demand from end-users, supported by financing access and festive-season launches, may sustain performance in the months ahead.
At the same time, proptech transactions gained pace as investors backed digital solutions for property management, analytics, and sales. Technology is gradually becoming central to the market’s operating model, from transaction oversight to property lifecycle planning.
India’s real estate ecosystem is benefiting from stronger regulation, more diversified capital channels, and a growing base of domestic institutional investment. Experts indicate that an emphasis on yield-oriented, well-governed assets will help the market remain resilient against global headwinds. Continued institutionalisation is expected to enhance professionalism and support long-term value creation in the sector.
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