India’s real estate sector witnessed its strongest quarterly deal activity in over a year, recording transactions worth $2.3 billion during the second quarter of 2026, according to Grant Thornton Bharat. The remarkable growth was largely driven by mergers and acquisitions (M&A), private equity investments and increasing institutional interest in commercial real estate assets.
The report highlights that deal values nearly tripled compared to the previous quarter, reflecting renewed investor confidence despite global economic uncertainties. Commercial properties continued to dominate the market, accounting for nearly two-thirds of the total deal value as investors prioritized stable, income-generating assets such as office spaces and business parks.
Domestic investors remained the key contributors to the market, representing the majority of acquisitions during the quarter. In contrast, residential investments witnessed a sharp decline as institutional capital shifted towards commercial developments that offer stronger long-term returns and lower market volatility.
The quarter also saw improved activity in public markets, supported by IPOs and Qualified Institutional Placements (QIPs), further strengthening capital inflows into the real estate sector. Industry experts believe that improving economic fundamentals, infrastructure development and sustained demand for premium commercial spaces will continue to attract institutional investors in the coming quarters.
With robust private equity participation and a growing preference for high-quality commercial assets, India’s real estate sector appears well-positioned to maintain its growth momentum and remain one of the country’s most attractive investment destinations.
