The Indian real estate sector commenced 2025 with a marked resurgence in transaction activity, reflecting sustained investor confidence and strategic alignment across asset classes. Private equity remained the primary capital driver, supported by institutional interest in income-generating commercial and retail assets. Real Estate Investment Trusts demonstrated continued expansion through active acquisitions, signalling a maturing investment ecosystem anchored in operational resilience and portfolio diversification.

Commercial and residential development segments maintained a leading position, backed by growing demand and targeted policy initiatives. At the same time, emerging platforms in real estate technology and small and medium REITs are beginning to reshape investment access and capital market participation. While M&A volumes held steady, transaction values indicated a shift toward mid-market consolidation and domestic-led deals.

The Q1 2025 edition of the Real Estate/REITs Dealtracker highlights key sector movements and investment trends, offering a comprehensive view of how market players are aligning their strategies amid ongoing macroeconomic shifts. With selective activity expected to continue across well-performing asset classes, the sector demonstrates strong fundamentals and a forward-looking approach to capital deployment and value creation.

Key insights from the Real Estate/REITs Dealtracker Q1 2025

In Q1 2025, the Indian real estate markets recorded 28 deals valued at USD 1.2 billion, marking a whopping 133% growth in volumes and over five-fold increase in values over Q1 2024 even after muted IPO and QIP activity, reflecting sustained investor interest. However, owing to four QIPs worth USD 1.9 billion witnessed in the previous quarter (Q4 2024), Q1 2025 saw a 51% decrease in overall values while M&A and PE activity still remained strong.

M&A volumes in Q1 2025 remained steady while reflecting a 56% drop in values over the previous quarter due to the absence of large-ticket transactions. Nitco Ltd went on an acquisition spree this quarter with four domestic acquisitions to expand business operations.

PE/VC activity surged over Q1 2024 with volumes increasing by 89% and values witnessing a six-fold increase, reaffirming the growing interest in real estate assets. Notably, Blackstone-backed Nexus Select Trust invested in two commercial assets together valued at USD 163 million.

IPO markets witnessed a sharp slowdown in this quarter, with the real estate sector mirroring this trend by muted IPO or QIP activity during the quarter over 3 IPOs and 4 QIPs in the previous quarter with a combined value of USD 2 billion.

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The real estate sector kicked off 2025 on a strong note, with private equity driving over 61% of the total sector deal activity this quarter. What stands out is the growing role of REITs in consolidating income-generating commercial and retail assets, and the emergence of small and medium REITs as a game-changer for broader capital markets access. Despite a muted IPO and QIP environment, institutional interest remains robust—reflecting confidence in the sector’s fundamentals and strategic shift towards operationally resilient, tech-enabled assets.
Shabala Shinde Partner and Real Estate Leader, Grant Thornton Bharat
Real Estate/REITs Dealtracker: Q1 2025
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Real Estate/REITs Dealtracker: Q1 2025

Providing M&A and PE deal insights

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