India’s real estate market recorded 42 deals worth $2.9 billion in Q3 2025, the highest since the pandemic, report by Grant Thornton Bharat has said. The report further stated that a significant increase in marquee M&A and private equity investments was also noted. Without including public market transactions, 33 private deals amounted to $1.8 billion, thus indicating a revived investor interest in the commercial and retail real estate sectors.
The recovery of the surge is not only a return of the lost trust but also confidence in Indian property market. What expresses most clearly the trust is the variety of the deals which were from private equity and M&As to large-scale asset acquisitions in both residential and commercial sectors. The private equity (PE) segment had twelve deals totalling $859 million which is a 71% increase in volume and a 48% rise in value compared to the previous quarter, thus seeing a strong rebound.
It’s not just a sudden upturn driven by sentiment; on the contrary, it mirrors the bolstered market fundamentals, increased institutional participation, and a maturing ecosystem whereby investors consider Indian real estate as a long-term, stable asset class.
The in-depth study of the $2.9 billion spike composition exposes a market functioning through various mechanisms. Commercial assets remain the favorite of institutional investors and REIT-backed funds who are focusing on Grade A office and retail spaces that offer them stable, long-term yields. The report said that the commercial development sector was leading the way in the continuation of its dominance, contributing 70% of the deal volume and 91% of the deal value, as four of the top 10 deals were from these sectors.
As far as the housing sector is concerned, developers are more and more collaborating with private equity players to co-develop luxury and mid-income projects, the segments that have a good balance of aspiration and absorption, the report added.
Mr. Sahil Agarwal, CEO, Nimbus Realty, says,“ The surge in real estate deal activity this quarter clearly mirrors the strong investor confidence in emerging markets like Noida. With transformative infrastructure projects such as the Noida International Airport and expanded metro connectivity, the region has evolved into a strategic investment destination. There’s a sharp rise in premium home demand driven by lifestyle aspirations and long-term value perception. The capital inflow is not just fuelling new launches—it’s reinforcing Noida’s position as one of India’s most promising real estate growth corridors."
Mr. Ashok Singh Jaunapuriya, MD and CEO, SS Group, says, “This surge in deal activity underlines the fact that India’s real estate market has matured into an investor-driven ecosystem. In Gurugram, both residential and commercial segments are seeing strong traction, especially around corridors like the Dwarka Expressway. The renewed capital inflow is empowering developers to accelerate premium launches, while investors are more confident about long-term returns. Thus, we feel the key difference today is quality and credibility; institutions are backing developers with strong delivery track records, and that’s reshaping how projects are financed and built.”
Mr. Sanjay Sharma, Director, SKA Group, says, “The record $2.9 billion in deals this quarter signals that investors are not just chasing land; they’re chasing lifestyle-driven assets. In Noida and Greater Noida, luxury housing is witnessing an evolution from aspiration to acquisition. Buyers and investors are valuing design excellence, sustainability, and location synergy. With connectivity projects like the Noida International Airport and metro expansion gaining momentum, the market has entered a high-confidence cycle. For developers, it’s the perfect moment to expand premium portfolios and deliver tangible value.”
At the same time, the industry's structure is being changed by mergers and acquisitions that are giving the developers the possibility of growing them more rapidly and making their financial situation more solid. Also, the increase in the share of domestic capital is quite noticeable and it is indicative of the local investors' strong trust which is a lot more than just the proportion of foreign inflows.
Mr. Shaurya Garg, Director – Marketing & Sales, Northwind Estates, says, “The record $2.9 billion deal activity in Q3 2025 clearly reflects the growing investor confidence in high-potential micro-markets such as Noida and Greater Noida. The focus in these regions is steadily shifting towards luxury and lifestyle-led housing, backed by strong infrastructure momentum. With the Noida International Airport and upcoming expressways transforming regional connectivity, this corridor is fast emerging as a magnet for premium real estate investments. We are witnessing a decisive shift from speculative interest to long-term value creation, as buyers and investors increasingly prioritise design, location, and credibility.”
Besides, the sentiment from the investor's point of view is stability rather than speculation. A pool of institutional funds with long investment horizons is gradually making its way back into the Indian market thereby signifying a revived confidence in the sector's strength and transparency. On the other hand, local investors who had been very cautious for a long time are now turning to real estate more and more as a safe haven against market volatility and inflation. Therefore, the third quarter of 2025 is a milestone in the capital cycle of residential real estate in India. The record investment-driven momentum is likely to be carried forward to the fourth quarter with continued inflows, a flurry of strategically planned M&A activities, and an increasing focus on the sustainable, execution-driven pipeline of projects.
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