India’s real estate sector recorded a sharp rise in deal activity during the April–June quarter, supported by higher private equity investments and a revival in capital market fundraising. On the other hand, institutional investments in the housing segment weakened significantly during the first half of 2026.

According to Grant Thornton Bharat’s quarterly Real Estate/REITs Dealtracker report, the sector registered 39 transactions worth $2.3 billion during April–June, nearly three times the value recorded in the previous quarter.

The report said the rebound was aided by increased fundraising through Initial Public Offerings (IPOs) and Qualified Institutional Placements (QIPs).

Private equity emerged as the largest contributor, accounting for nearly half of the overall deal value, supported by larger transaction sizes, while public market activity also remained robust.

The report showed that merger and acquisition (M&A) activity totalled 22 deals worth $367 million during the quarter, up 10% from $335 million in the corresponding period last year.

In the private equity and venture capital segment, 13 transactions worth $1.157 billion were completed, compared with $458 million a year earlier.

The quarter saw two IPOs raising $381 million and two QIPs mobilising $401 million, taking the combined capital raised through public markets to $782 million, as per the report.

The report identified the $323 million joint investment by Mindspace Business Parks REIT and 360 One Alternates Asset Management Ltd in Radial IT Park Ltd, owned by the CapitaLand group, as the largest transaction of the quarter.

“The quarter reflects growing confidence among institutional investors in India’s commercial real estate market,” said Bhavik Vora, Partner, Grant Thornton Bharat.

He added the capital is increasingly flowing towards high-quality, income-generating assets, as reflected in the sharp increase in private equity investments and the revival in REIT and capital market activity.