Real Estate Deals Plummet 63% to $763 Million in January-March Quarter: Report

India's Real Estate Sector Sees Sharp Decline in Deal Value

India's real estate sector witnessed a significant decline in deal value during the January-March period, according to a recent report by Grant Thornton Bharat. The consultancy firm's 'Real Estate Dealtracker' report highlights a 63% drop in deal value to $763 million, marking the lowest quarterly values since the last quarter of 2023.

The January-March period saw 32 transactions, making it the second-highest quarterly deal volume on record, trailing only Q3 2025. However, the aggregate deal value declined sharply due to the absence of large-ticket transactions and a clear tilt toward smaller and mid-sized deals.

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Out of the total $763 million worth real estate deals, private equity deals fell 71% to $458 million from $1,590 million, while merger and acquisition (M&A) deals declined by 38% 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 suggests that investment trends indicate a strong preference for commercial assets, particularly office and retail platforms. According to Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, the deal environment remains resilient, although investors are adopting a more selective approach, prioritizing asset-level performance and execution certainty amid ongoing macro and geopolitical uncertainties.

Shinde noted that 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. The report concludes that 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.