India's Real Estate Deals Hold Steady at $763M in Q1 2026 Amid Global Headwinds

The report from Grant Thornton Bharat said deal volumes, including IPO and QIP activity, rose from 26 to 32 sequentially and were up about 14 per cent from 28 deals a year earlier, signalling steady momentum.

The divergence between rising activity and declining values highlighted a clear shift toward smaller and mid-sized transactions and more measured capital deployment amid a relatively uncertain macro environment.

M&A activity strengthened volume wise, with 19 deals, even as values declined sharply to $305 million, reflecting the absence of large-ticket transactions.

The quarter was characterised by mid-market and consolidation-led deals, with domestic activity continuing to dominate.

"The 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," said Shabala Shinde, Partner and Real Estate Industry Leader, Grant Thornton Bharat.

Investment trends indicated a strong preference for commercial assets, particularly office and retail platforms, supported by yield visibility and stable cash flows, while REIT-led transactions continued to reinforce institutional confidence in high-quality, income generating assets, Shinde added.

Overall, the deal environment remained resilient, though investors are adopting a more selective approach, prioritising asset-level performance and execution certainty amid ongoing macro and geopolitical uncertainties, he said.

PE/VC activity recorded 13 deals worth $458 million, marking the highest quarterly volumes in the past year, even as values dropped 71 per cent sequentially due to the absence of a mega transaction witnessed in the previous quarter.

Overall, M&A activity strengthened in core real estate assets, while PE investments focused on residential growth, technology adoption and early-stage opportunities.

- IANS