India real estate deal value crashes 63% in Q1 2026 despite record-high transaction volume: Report

The report stated that Q1 2026 recorded strong deal momentum, with 32 transactions, making it the second-highest quarterly deal volume on record, trailing only Q3 2025. However, aggregate deal value declined sharply by 63 percent to $763 million, primarily due to the absence of large-ticket transactions and a clear tilt toward smaller and mid-sized deals, the report mentioned.

The report showed that the deals closed during the January-March period of 2026 marked the lowest quarterly values since the last quarter of 2023.

Private equity deals

Out of the total $763 million in real estate deals, Grant Thornton Bharat noted that private equity deals fell 71 percent to $458 million from $1,590 million. Merger and acquisition (M&A) deals fell 38 percent to $305 million from $493 million.

Capital markets activity remained subdued during the quarter, with no IPO (initial public offer) or QIP (Qualified Institutional Placement) issuances recorded, the report said.

Commenting on the report, Shabala Shinde, Partner and Real Estate Industry Leader, Grant Thornton Bharat, said: “Q1 2026 reflects a stable yet measured start for India’s real estate sector, with deal volumes improving even as overall values corrected sharply due to the absence of large-ticket transactions.”

Shift in trend

The March quarter saw a clear shift towards mid-sized and income-generating assets, with domestic activity continuing to dominate and private equity remaining a key source of capital, Shinde added.

Investment trends indicate a strong preference for commercial assets, particularly office and retail platforms.

“Overall, the deal environment remains resilient, though investors are adopting a more selective approach, prioritising asset-level performance and execution certainty amid ongoing macro and geopolitical uncertainties,” Shinde said.