India’s property sector started FY26 on a positive note, with transactional activity rising 14% annually to reach 32 deals in the first quarter ended March 2026. Compared to 28 deals a year ago and 26 in the preceding quarter, this growth reflects a maturing market adapting to investor preferences.
Grant Thornton India’s analysis reveals a nuanced picture: deal values held at $763 million, tempered by the lack of high-value megadeals. The data points to a strategic tilt toward compact, mid-market transactions, as buyers seek stability in uncertain times.
Breaking it down, M&A activity topped the charts at 19 deals valued at $305 million, a sharp value decline without giants. PE/VC notched 13 deals totaling $458 million, marking the strongest quarterly showing in 12 months, even as values fell 71% from the prior period’s peaks.
‘We’re witnessing a pronounced shift to mid-sized, revenue-producing properties,’ observed Shabala Shinde, Grant Thornton’s real estate head. Domestic players dominated, fueled by private equity inflows, while commercial segments – offices and retail – shone with reliable yields and cash flows. REIT transactions reinforced institutional appetite for top-tier assets.
Overall, the environment remains adaptable. Investors are honing in on execution certainty and asset fundamentals, navigating broader economic headwinds and geopolitical risks. This selectivity bodes well for long-term health.
As India’s real estate ecosystem evolves, expect more such calculated moves. Government reforms, rising urbanization, and digital integration could amplify this momentum, positioning the sector for robust expansion through 2026 and beyond.
