Private Equity Leads Q2 Real Estate Boom; Residential Investment Plunges 88%
India’s India real estate deals market witnessed a sharp revival in the April-June quarter, with deal values nearly tripling to $2.3 billion as institutional investors aggressively increased investments in commercial properties. The surge comes despite global economic uncertainty, highlighting growing confidence in income-generating office assets and REIT-backed investments.
While commercial real estate attracted the bulk of fresh capital, residential investments saw a dramatic slowdown, signalling a clear shift in investor strategy.
India real estate deals hit a one-year high in Q2
According to Grant Thornton Bharat’s latest Real Estate/REITs Dealtracker, India recorded 39 real estate deals worth $2.3 billion during the April-June quarter, marking the highest quarterly deal value in more than a year.
Deal volumes rose 18% quarter-on-quarter, while total deal values nearly tripled from $763 million recorded in the previous quarter.
The growth was driven by large private equity investments, REIT acquisitions and a rebound in IPO and qualified institutional placement (QIP) fundraising.
Commercial assets emerge as the biggest investment destination
The report shows that institutional investors strongly preferred commercial real estate over residential projects.
Commercial properties accounted for 12 deals worth $997 million, contributing nearly 65% of the total deal value during the quarter.
The largest transaction was Mindspace Business Parks REIT and 360 One Alternates Asset Management’s acquisition of Radial IT Park Ltd for $323 million.
Mindspace also completed another major acquisition during the quarter, taking its cumulative commercial investments to $596 million.
“M&A activity remained robust while private equity investors continued to deploy capital into high-quality commercial assets. Strategic acquisitions and REIT-led transactions indicate investors are building long-term portfolios rather than chasing short-term opportunities,” said Bhavik Vora, Partner, Grant Thornton Bharat.
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| Metric | Q2 2026 | Key Insight |
|---|---|---|
| Total Deals | 39 | Highest quarterly deal volume in over a year |
| Total Deal Value | $2.3 Billion | Nearly 3Ă— higher than Q1 2026 |
| Deal Volume Growth | +18% QoQ | Increased from the previous quarter |
| Commercial Real Estate | 12 Deals, $997 Million | Around 65% of total deal value |
| Residential Investment | $22 Million | Down 88% QoQ |
| Private Equity (PE) | 13 Deals, $1.2 Billion | Up 153% QoQ, largest source of capital |
| M&A Activity | 22 Deals, $367 Million | Record quarterly M&A activity |
| Domestic Acquisitions | 95% | Dominated overall acquisition activity |
| IPO & QIP Fundraising | $782 Million | Raised through 2 IPOs and 2 QIPs |
| Largest Deal | $323 Million | Mindspace Business Parks REIT & 360 ONE Alternates acquired Radial IT Park |
| Largest M&A Deal | $121 Million | L&T Realty acquired a 20-acre land parcel from International Green Scapes |
| Investor Preference | Commercial Assets | Institutional investors favored stable, income-generating assets over residential projects |
Residential investment drops sharply as investor focus shifts
The biggest trend in the quarter was the sharp decline in residential investments.
Investment into residential development plunged 88% quarter-on-quarter to just $22 million, reflecting investor preference for stable, income-generating commercial assets amid global macroeconomic uncertainty.
The report suggests institutional investors are increasingly prioritising predictable rental income and long-term cash flows over residential development projects.
Private equity and domestic investors dominate India real estate deals
Private equity remained the largest source of capital during the quarter.
PE investors completed 13 deals worth $1.2 billion, representing a 153% increase compared to the previous quarter.
Meanwhile, mergers and acquisitions also remained strong, with 22 deals worth $367 million, the highest level recorded in recent quarters.
Domestic investors dominated acquisition activity, accounting for nearly 95% of all transactions.
The largest domestic M&A deal was L&T Realty Properties’ $121 million acquisition of a 20-acre land parcel from International Green Scapes Ltd.
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| Company | Current Stock Price* | Why It Could Benefit from Commercial Real Estate Boom |
|---|---|---|
| Mindspace Business Parks REIT | â‚ą496.83 | Leading beneficiary after acquiring Radial IT Park; expanding commercial office portfolio. |
| Brookfield India Real Estate Trust | â‚ą341.31 | Strong institutional backing and QIP fundraising support its office asset portfolio. |
| Embassy Office Parks REIT | ₹445.49 | India’s largest office REIT, well-positioned to benefit from rising demand for income-generating commercial assets. |
| DLF Ltd | â‚ą673.65 | Significant exposure to premium office assets through DLF Cyber City Developers (DCCDL). |
| Phoenix Mills Ltd | â‚ą2091.20 | Leading retail mall developer with recurring rental income from commercial properties. |
| Prestige Estates Projects | â‚ą1706.90 | Expanding office parks and commercial portfolio alongside residential developments. |
| Oberoi Realty Ltd | â‚ą1884.80 | Strong pipeline of premium office and mixed-use commercial projects in Mumbai. |
| Brigade Enterprises Ltd | â‚ą568.20 | Diversified office, retail and commercial assets across major IT hubs. |
| Godrej Properties Ltd | â‚ą2164.30 | Growing presence in mixed-use and commercial developments alongside residential projects. |
*Stock prices are as of 21 July 2026 (latest available market data) and are subject to change during market hours.
Capital market activity rebounds with IPOs and QIPs
Fundraising activity also improved significantly during the quarter.
The real estate sector witnessed two IPOs and two Qualified Institutional Placements (QIPs) that collectively raised $782 million.
The fundraising was led by the Bagmane Prime Office REIT IPO, while Brookfield India Real Estate Trust and Bagmane Prime Offices REIT successfully completed QIPs, reflecting improving investor appetite for listed commercial real estate platforms.
Here’s what happened today and why traders reacted
The Grant Thornton Bharat report highlighted a significant shift in institutional investment strategy.
Instead of aggressively funding residential projects, investors are allocating larger amounts of capital toward commercial office assets, REITs and long-term income-generating properties.
The sharp increase in deal value, rising private equity participation and improving capital market activity indicate renewed confidence in India’s commercial real estate sector despite ongoing global uncertainty.
What impact could this have on investors?
For long-term investors, the latest India real estate deals data reinforces the growing appeal of commercial real estate, REITs and office assets that generate stable rental income.
Listed REITs, commercial developers and companies with large office portfolios could continue attracting institutional interest if this investment trend persists.
For traders, the report may keep stocks linked to commercial real estate, REITs, property developers and construction companies in focus as institutional capital increasingly favours high-quality commercial assets over residential developments.
The latest quarter also suggests that domestic institutional investors are taking a leading role in driving India’s real estate investment cycle, reducing dependence on overseas capital while strengthening confidence in the country’s commercial property market.
