India real estate deals rise to 32 in Q1 2026 as value drops to $763 million

Synopsis

India's real estate sector saw 32 deals worth USD 763 million in Q1 2026. Deal volumes increased, but total value declined. The market favors mid-sized, income-generating commercial assets like offices and retail. Domestic investors and private equity are key. This indicates a maturing investment landscape focused on yield and asset quality.

New Delhi: India’s real estate sector recorded 32 deals valued at USD 763 million in Q1 2026, according to Grant Thornton Bharat’s Real Estate Dealtracker.

Deal volumes including IPO and QIP activity increased from 26 in Q4 2025 to 32 in Q1 2026 and rose from 28 deals a year ago (up 14%), while total deal value declined significantly from USD 3 billion in the previous quarter, marking one of the lowest quarterly values since Q4 2023.

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“The 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. Investment trends indicate a strong preference for commercial assets, particularly office and retail platforms, supported by yield visibility and stable cash flows, while REIT-led transactions continue to reinforce institutional confidence in high-quality, income generating assets,” said Shabala Shinde, Partner and Real Estate Industry Leader, Grant Thornton Bharat.

M&A activity strengthened in terms of volumes, with 19 deals, even as values declined sharply to USD 305 million, reflecting the absence of large-ticket transactions. The quarter was characterised by mid-market and consolidation-led deals, with domestic activity continuing to dominate.

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“Capital is becoming increasingly selective, with a strong preference for income-generating commercial assets and REIT-aligned and infill development opportunities. The industry reflects a maturing investment landscape, where yield visibility, asset quality, and execution certainty are taking precedence amid ongoing global macro and geopolitical uncertainties,” said Chan Chakravarti, a global real estate investor and capital strategist who has closely tracked commercial real estate evolution.

The largest transaction was RSVM Hospitality Pvt Ltd’s acquisition of a 100% stake in Neterwala Group’s 18.6-acre land parcel in Thane, valued at USD 55 million, highlighting continued interest in real estate operator-led opportunities.

“Despite global uncertainty, including geopolitical tensions and cautious cross-border capital flows, India continues to attract investment because of its economic growth, infrastructure push, and improving market transparency. We expect sustained interest in office assets, redevelopment opportunities, and strategic land acquisitions across key cities,” said Binitha Dalal, Founder & Managing Partner, Mt. K Kapital.

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PE activity recorded 13 deals worth USD 458 million, marking the highest quarterly volumes in the past year, even as values declined sharply by 71% quarter-on-quarter due to the absence of a mega transaction witnessed in the previous quarter. The decline also led to a drop in average deal sizes from USD 80 million to USD 23.8 million, indicating a return to normalised ticket sizes and a shift toward multiple smaller investments rather than concentrated bets.

Despite the moderation in value, private equity remained a key source of capital, with continued deployment across assets. The largest deal during the quarter was Alpha Alternatives’ USD 139 million investment in ASF Infrastructure Pvt. Ltd, showing sustained investor interest in commercial development assets.

“While metros like Bengaluru, Mumbai and Delhi-NCR continue to attract a large share of capital, we are also seeing early signs of interest in well-planned developments across Tier 2 markets, supported by improving infrastructure and evolving demand. At Manglam, we see this as a positive shift, reinforcing the need to build sustainable, high-quality developments that deliver long-term value,” said Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa & Resorts Pvt. Ltd.

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