India’s real estate market is at a turning point. Recent data shows a significant rise in investment activity. From July to September 2025, the industry saw 42 transactions worth $2.9 billion, the highest quarterly figure in Indian property history. This shift points to a more mature market where transparency and governance are becoming standard.
Boost in Investor Confidence
During this quarter, there was a surge in mergers, acquisitions, and private equity deals. Analysts say investors are more confident due to stable earnings and clearer regulations. According to Grant Thornton Bharat, there were nine public market transactions that included five IPOs and four qualified institutional placements, alongside 33 private deals totaling $1.8 billion. This rebound in activity comes after a lull earlier in the year.
Shabala Shinde, a Real Estate Leader at Grant Thornton Bharat, noted, “This quarter marks a turning point for India’s real estate sector.” The confidence in income-generating assets shows the market’s growing depth.
Domestic Deals Taking the Lead
Most of the activity came from domestic mergers and acquisitions. These accounted for 21 transactions worth $843 million. A notable deal was The Phoenix Mills Ltd’s takeover of Island Star Mall Developers, which bolstered its retail offerings. Mindspace REIT’s acquisition of The Square was also significant, as it marked their first third-party purchase after their initial listing.
Real Estate Investment Trusts (REITs) have gained traction among investors seeking regular income. This trend channels institutional capital into office and retail assets, further stabilizing the market.
The Rise of Private Equity
Private equity has also regained momentum, with 12 deals worth $859 million, which represents a 71% increase in volume from the previous quarter. Investments in commercial real estate and proptech—technology solutions for property—are leading this charge.
Prime Offices Fund’s $290 million investment in RMZ One Paramount highlights ongoing investor interest in office spaces, even with the rise of remote work. Analysts believe investors are prioritizing high-quality real estate in cities like Bengaluru and Pune.
Strengthening Capital Markets
The public market is looking strong as well. Five IPOs generated $805 million, while four QIPs provided an additional $344 million. Knowledge Realty Trust’s IPO was a standout, bringing in $547 million and indicating strong interest in reliable real estate platforms.
Chintan Sheth, CMD of Sheth Realty, commented on the market’s evolution towards a more institutional focus. He says, “Investors now prefer structured, income-generating opportunities,” which reflects the sector’s increasing sophistication.
Residential Real Estate and the Tech Boom
While commercial real estate flourished, the residential sector saw less action. However, developers remain hopeful that strong end-user demand and favorable interest rates will stabilize this segment.
Moreover, the rise in real estate technology is transforming how the industry operates. Startups focusing on areas like digital transactions and data analytics show that tech is vital for progress in real estate finance and operations.
Experts believe that with a stronger regulatory framework and a growing number of institutional investors, the sector is set for continued growth. The demand for transparent, income-focused investments suggests that India’s property market is transitioning into a more professional era, aimed at long-term value creation.
For more in-depth data and trends, you can explore reports from Grant Thornton Bharat or visit the Realty Today for comprehensive real estate insights.
