Real estate deals down 63% to $763 million in Jan-Mar against Dec quarter: Report

Synopsis

India's real estate sector saw a significant 63 percent drop in deal value during January-March 2026. This decline to USD 763 million occurred because of fewer large-ticket transactions. The period recorded strong deal volumes with 32 transactions, but the overall value was impacted. Private equity deals and merger and acquisition deals also saw a decrease.

New Delhi, India's real estate sector saw a sharp 63 per cent decline in deal value at $763 million during January-March period against the preceding quarter due to lesser large-ticket transactions, according to Grant Thornton Bharat.

Consultancy firm Grant Thornton Bharat on Friday released its 'Real Estate Dealtracker' report.

"Q1 2026 (January-March) 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 per cent 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 deals closed during the January-March period of 2026 marked the lowest quarterly values since the last quarter of 2023, it added.

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

Capital markets activity remained subdued during the quarter (January-March), 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."

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.

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