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₹6,500 cr realty shake-up: Commercial deals soar 2X, residential slumps
Supporting this trend, Grant Thornton Bharat's Real Estate Q2 2025 Dealtracker revealed that the sector recorded transactions worth $2.5 billion (approx. ₹20,875 crore) in the first half of the year. Although that marks an 8% decline from $2.7 billion in H1 2024, the volume of deals actually rose—from 40 last year to 45 this year—highlighting deeper market participation.
Total Deal Value: $2.5 billion worth of real estate deals in H1 2025, down 8% from $2.7 billion in H1 2024.
Deal Volume: 45 transactions in H1 2025, up from 40 in H1 2024.
Commercial real estate accounted for 62% of ₹6,500 crore in total deal value in Q2 2025.
Blackstone's $378 million acquisition of South City Mall, Kolkata — the quarter's largest private equity transaction
Total Q2 investment stood at ₹6,500 crore, showing a measured slowdown in momentum.
Top contributors included office, warehousing, and retail segments.
Private equity interest remains strong, especially in income-yielding assets.
Investors are focusing on core and core-plus strategies amid market uncertainty.
Q2 Activity: 17 deals worth $1.3 billion, including IPOs and QIPs.
Commercial Real Estate Dominance: Institutional capital continues to flow into commercial platforms.
Capital Market Revival: Return of IPOs, SME REITs, and anticipation of India's largest REIT.
Outlook: Sector poised for a more mature, innovation-led investment cycle in H2 2025.
'The data reflects a sector recalibrating for long-term strength,' said Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat. 'While deal values moderated, institutional capital continues to flow steadily into commercial platforms, reinforcing the asset class' resilience.'
Notably, the revival of IPO and SME REIT activity also signals increasing investor interest in structured real estate products. The anticipation of India's largest-ever REIT listing in the coming months is expected to further cement the capital market's role in funding real estate growth.
In Q2 alone, there were 17 deals worth $1.3 billion, with IPOs and Qualified Institutional Placements (QIPs) returning to the fore. While residential deals declined slightly, commercial real estate saw strong activity across metros—driven by office parks, warehousing hubs, and retail portfolios with long-term lease visibility.
With rising interest from global pension funds, sovereign wealth funds, and domestic institutions, the second half of 2025 is poised for a more mature, innovation-led investment cycle, say experts. The shift indicates a flight to stability amid global volatility, with Grade-A office assets and logistics parks emerging as preferred bets.
In contrast, residential and proptech saw muted action
Residential segment:
Accounted for 23% of total deal volumes in Q2 2025.
Contributed only 10% of the total transaction value, indicating smaller ticket sizes compared to commercial.
Proptech segment:
Made up 15% of total deal volumes.
Represented just 5% of total deal value, reflecting modest deal sizes and lower investor allocation.
Number of M&A transactions: 6 deals
Total deal value: USD 195 million
Annual change: A 45% decline compared to the corresponding quarter last year
This reflects a significant slowdown in M&A activity, highlighting that strategic consolidation in the real estate sector took a backseat in Q2 2025.
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