India’s real estate sector is back in the headlines—and this time, for all the right reasons. According to a recent report by Grant Thornton Bharat, the country clocked 28 real estate deals worth $1.2 billion in Q1 2025, marking a 133% surge in deal volumes and a fivefold rise in value compared to Q1 2024.
What’s more? Private equity (PE) and venture capital (VC) investments dominated the action, contributing to 17 out of 28 deals worth a whopping $1.05 billion. It’s a clear signal that institutional investors are bullish on Indian real estate, despite a lull in IPOs and QIPs.
By the Numbers: Real Estate’s Q1 2025 Explosion
- Total Deals: 28
- Total Value: $1.2 Billion
- PE/VC Contribution: $1.05 Billion (17 Deals)
- M&A Contribution: $137 Million (11 Deals)
- YoY Volume Growth: 133%
- QoQ Volume Growth: 47%
- QoQ Value Drop: 51%
While Q4 2024 was driven by capital market activities, Q1 2025 shows a resilient and diversified investment pattern, with PE funding taking center stage.
Industry Voices: What Experts Are Saying
Shabala Shinde, Partner & Real Estate Leader, Grant Thornton Bharat:
“2025 for Indian real estate started on a strong note with a noteworthy pick-up in overall deal activity, registering 28 transactions worth $1.2 billion.”
Umesh Rathore, VP Sales & Marketing, VVIP Group:
“We see this as an immense opportunity for both developers and investors to shape the future of Indian real estate.”
Yashank Wason, Managing Director, Royal Green Realty:
“Cities like Gurugram, Sonipat, Indore, Bahadurgarh, and Rohtak are evolving into high-growth real estate corridors.”
Emerging Cities Taking the Spotlight
While metro cities continue to lead, Tier-2 and Tier-3 cities are fast becoming investment magnets. Infrastructure upgrades, housing demand, and affordable pricing are transforming cities like:
- Sonipat
- Bahadurgarh
- Rohtak
- Indore
These locations are increasingly seen as future-ready urban centers, ready to absorb both residential and commercial growth.
Why the Surge Despite IPO Slowdown?
Surprisingly, the surge came even as IPO and QIP activity remained muted. The driving force? Sustained investor confidence, led by:
- Consistent government support for real estate
- FDI inflows and policy ease
- Infrastructure-led urban development
- Diversification of portfolios by institutional investors
What This Means for Investors and Developers
With PE firms leading the charge and deal flow concentrated in high-growth zones, 2025 could be a landmark year. Whether you’re a developer looking to ride the wave or an investor eyeing high-yield assets, now is the time to act.
Conclusion: The Real Estate Engine is Roaring Again
The opening quarter of 2025 has made one thing clear: Indian real estate is not just bouncing back—it’s surging ahead with unstoppable momentum. With $1.2 billion already in the books and private equity fueling the fire, the months ahead promise more action, more opportunities, and possibly, new benchmarks.
