The real estate sector recorded a record-breaking 42 transactions valued at $2.9 billion in the third quarter (Q3) of 2025, marking the highest quarterly deal volume to date.
This included nine public market transactions–five IPOs and four QIPs, up significantly from the previous quarter, according to Grant Thornton Bharat’s Real Estate Dealtracker. Excluding public market deals, private transactions accounted for 33 deals worth $1.8 billion, reflecting a sharp rebound in investor appetite.
The report added that the surge was driven by marquee M&A and private equity investments, including The Phoenix Mills’ $641 million acquisition of Island Star Mall Developers and institutional interest in income-generating commercial assets, signalling strong confidence in India’s commercial and retail real estate segments amid evolving market conditions.
“The surge in marquee transactions, rising investor appetite for income-yielding, institutional-grade assets and sustained capital market engagement reflect growing institutional depth and strong confidence in the sector’s resilience and growth potential,” said Shabala Shinde, Partner and Real Estate Leader, Grant Thornton Bharat.
According to the report, in the latest quarter, M&A activity in India reached a notable high, with 21 deals valued at $843 million. Domestic transactions overwhelmingly dominated the landscape, accounting for 20 deals worth $838 million, marking the highest quarterly deal volume on record.
A single high-value transaction–The Phoenix Mills’ $641 million acquisition of Island Star Mall Developers Pvt Ltd–alone contributed 76 per cent of the total deal value, reflecting the impact of marquee deals on overall M&A figures.
Excluding this transaction, deal values remained largely consistent with the previous quarter, reflecting a stable underlying trend in domestic activity. Outbound M&A saw only one deal, while inbound activity remained absent, highlighting a continued focus on the domestic market.
Notably, the acquisition of a 100 per cent stake in The Square by Mindspace REIT through its investee company, Horizonview Properties Pvt Ltd, marked the first third-party acquisition since listing, signalling a gradual diversification in deal structures.
PE activity rebounded strongly this quarter, with 12 deals valued at $859 million, marking a 71 per cent increase in deal volumes and a 48 per cent rise in deal values compared to Q2. The quarter was driven by three high-value transactions exceeding $100 million, collectively worth $694 million and accounting for 81 per cent of total deal values.
Commercial assets and real estate technology attracted the bulk of investment, while other sectors remained largely steady.Notably, Prime Offices Fund’s $290 million investment in RMZ One Paramount Pvt Ltd was among the marquee deals, contributing significantly to the quarter’s robust performance.
Compared to Q3 2024, while volumes remained largely steady, values more than doubled from $419 million to $859 million, marking the second-highest quarterly deal value since Q3 2024.Equity markets showed renewed activity this quarter, with five IPOs raising a total of $805 million and four QIPs worth $344 million, signalling a recovery following a subdued period.
The IPO landscape was notably influenced by Knowledge Realty Trust’s $547 million offering, which alone contributed 68 per cent of the total IPO deal value, highlighting its outsized impact on the quarter’s fundraising momentum.
Published on October 24, 2025
