India’s Real Estate Sector Sees 8% Dip in Deal Value Despite Uptick in Transactions

India’s real estate sector recorded deals worth USD 2.5 billion in the first half of 2025, marking an 8% year-on-year decline in total deal value, according to Grant Thornton Bharat’s Real Estate Q2 2025 Dealtracker report. Interestingly, the number of transactions rose to 45 from 40 in H1 2024, indicating a shift toward smaller, more strategic investments.

 

Key Highlights:

 

The sector saw 45 deals including IPOs and Qualified Institutional Placements (QIPs), up from 40 in the same period last year.

 

Despite the volume increase, total deal value fell from USD 2.7 billion in H1 2024 to USD 2.5 billion in H1 2025.

 

Q2 alone accounted for 17 transactions worth USD 1.3 billion, reflecting cautious optimism among investors.

 

Sector Dynamics:

 

The decline in deal value is attributed to recalibration within the sector, with investors favoring mid-market consolidation and operational resilience over large-ticket transactions.

 

Institutional capital continues to flow into commercial platforms, reinforcing confidence in income-generating assets.

 

The resurgence of IPOs and SME REITs, along with anticipation of India’s largest REIT, signals growing capital market participation.

 

Outlook: The second half of 2025 is expected to usher in a more innovation-led investment cycle. With capital markets warming up and institutional interest holding steady, the sector is poised for a mature phase of growth driven by technology, sustainability, and diversified asset classes.

 

Sources: Grant Thornton Bharat, Business Standard