Private equity investments dominate as real estate deal volumes surge 133% in Q1 2025: Report, ET RealEstate
NEW DELHI: India’s real estate sector began 2025 on a strong note, recording 28 deals valued at $1.2 billion, a 133% increase in deal volumes compared to Q1 2024, despite a 51 per cent quarter-on-quarter decline in deal values due to muted IPO and QIP activity, according to a report by Grant Thornton Bharat.
The surge was driven primarily by private equity (PE) investments, which accounted for 88 per cent of the total deal value, reaffirming institutional interest in income-generating and operationally resilient assets.
“Compared to Q1 2024, Q1 2025 for the real estate sector started on a notably stronger footing, marked by increased transaction volumes and sustained institutional interest. Despite macroeconomic uncertainties, including US tariff developments, targeted policy initiatives aimed at urban infrastructure, affordable housing and stalled project resolutions are expected to bolster sector sentiment and support transaction activity,” said Shabala Shinde, partner and real estate leader, Grant Thornton Bharat.
A total of 17 PE transactions were reported, valued at $1.05 billion, marking a six-fold rise over the same period last year. Notably, large-ticket investments by REITs such as Mindspace Business Parks and Nexus Select Trust dominated the quarter. The deal of the quarter was Mindspace REIT’s $234 million acquisition of 1.82 million sq ft of office space at Commerzone Raidurg, Hyderabad.
Meanwhile, M&A activity remained stable in terms of volume with 11 transactions but saw a 56 per cent drop in value from Q4 2024, primarily due to the absence of high-value outbound deals. One significant inbound M&A was Mitsubishi Estate’s $64 million acquisition of a 49 per cent stake in Birla Estates, marking nearly half of the quarter’s M&A value.
