Commercial development anchors deal value in India in April-June: Report

New Delhi, July 15 Commercial development continued to anchor deal value in India in the April-June period this year, accounting for 62 per cent of total investment, as institutional capital targeted resilient, income-generating assets, according to a report on Tuesday.

The quarter saw 17 transactions worth $1.3 billion (including IPOs and QIPs), with 13 deals valued at $775 million excluding public market activity.

“With SM REIT momentum building and India’s largest-ever REIT issue expected in H2, the sector enters the second half of the year with cautious optimism and an institutional focus, said the report by Grant Thornton Bharat.

The January-June (H1 2025) reflects a sector recalibrating for long-term strength in the real estate sector in the country.

“While overall deal values moderated, institutional capital continues to flow steadily into commercial platforms, reinforcing the asset class’s resilience. The return of IPO and SME REIT activity, alongside anticipation of India’s largest REIT, signals that capital markets are gearing up to play a larger role in driving real estate growth,” explained Shabala Shinde, Partner and Real Estate Industry Leader, Grant Thornton Bharat.

As we move into H2, the sector is well-positioned for a more mature, innovation-led cycle of investment, Shinde mentioned.

Capital market activity picked up in the April-June period (Q2), with two IPOs raising $243 million and two QIPs totalling $245 million.

This marked a significant turnaround from Q1’s inactivity, reflecting a gradual return of investor confidence, especially in income-generating and platform-led real estate models.

The Small and Medium Real Estate Investment Trusts (SM REITs) segment also gained momentum, with fresh registrations signalling broader public market access for mid-sized developers.

These developments point to a cautious but steady re-engagement with listed instruments, setting the stage for deeper capital market integration in H2, said the report.

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