India’s real estate sector recorded a steep 63% drop in deal value to USD 763 million in the January–March quarter of 2026 compared to the previous quarter. It is mainly due to fewer large-ticket transactions, according to Grant Thornton Bharat.
The consulting business highlighted a divergent pattern between deal volume and value during the quarter in its "Real Estate Dealtracker" report, which was published on Friday.
"Q1 2026 (January-March) recorded strong deal momentum, with 32 transactions, making it the second-highest quarterly deal volume on record, trailing only Q3 2025.
However, aggregate deal value declined sharply by 63 per cent to USD 763 million, primarily due to the absence of large-ticket transactions & a clear tilt toward smaller & mid-sized deals," the report mentioned.
Shift Towards Smaller Deals Drives Value Decline
Despite the higher number of transactions, the overall deal value during the quarter was the lowest recorded since the last quarter of 2023, indicating a shift in the nature of investments.
Out of the total USD 763 million in deals, private equity investments dropped significantly by 71 per cent to USD 458 million from USD 1,590 million in the preceding quarter. Meanwhile, merger & acquisition (M&A) deals also declined by 38% to USD 305 million from USD 493 million.
The report further noted that capital markets activity remained weak during the January–March period, with no IPO (initial public offer) or QIP (Qualified Institutional Placement) issuances taking place.
Commenting on the findings, Shabala Shinde, Partner & Real Estate Industry Leader, Grant Thornton Bharat, said: "Q1 2026 reflects a stable yet measured start for India's real estate sector, with deal volumes improving even as overall values corrected sharply due to the absence of large-ticket transactions."
She added that the March quarter saw increased focus on mid-sized & income-generating assets, with domestic participation continuing to lead the market & private equity remaining a major funding source.
The report also pointed out that investors are showing a strong preference for commercial real estate, especially office & retail platforms.
"Overall, the deal environment remains resilient, though investors are adopting a more selective approach, prioritising asset-level performance and execution certainty amid ongoing macro and geopolitical uncertainties," Shinde said.
For more information, get in touch with us at Vserve Real State India
