What’s Fueling India’s $1.2 Billion Real Estate Surge in 2025? Report

India's real estate market saw a major increase in investment activity in the first quarter of 2025, with 28 deals worth $1.2 billion, as per Grant Thornton Bharat's recent report. 

The report points out that PE/VC transactions led the quarter, as they accounted for 17 deals worth $1.05 billion. The M&A segment reported 11 deals worth $137 million, which was in stark contrast.

"In Q1 (January-March) 2025, the Indian real estate markets recorded 28 deals valued at $1.2 billion, marking a whopping 133 per cent growth in volumes and an over five-fold increase in values over Q1 2024 even after muted IPO and QIP activity, reflecting sustained investor interest," the report reads.

India's Real Estate: Year-on-Year Growth

Relative to the same quarter in 2024, Q1 2025 saw deal volumes rise by 133% and deal values more than five times over. This was achieved against the backdrop of muted activity in qualified institutional placements (QIPs) and initial public offerings (IPOs), pointing to persistent investor appetite in the space. 
 

Although there was a 47% rise in deal volumes against Q4 2024, the overall value of deals reduced by more than 51%. The last quarter had witnessed an upsurge in capital market-driven deals, which had boosted deal values. 
 

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Real Estate: Expert Insights

Shabala Shinde, Grant Thornton Bharat Partner & Real Estate Leader, said, "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 at VVIP Group, stated that the real estate industry remains the pillar of the economic growth of our country. The record level of investments during the first quarter of 2025, as noted in the report, depicts the sector's improving fundamentals and increasing investor faith. 

“We at VVIP Group see this as an immense chance for developers as well as investors to make real estate history. We are steadfast in taking advantage of this drive by offering projects that resonate with innovations, appealing to the vision of modern India and creating lasting value for our stakeholders,” he added.

Yashank Wason, Managing Director, Royal Green Realty, said that the closure of 28 real estate deals worth $1.2 billion in Q1 2025 reflects not just the sector’s resilience but also the immense potential of emerging real estate hubs. He highlighted that Cities like Gurugram, Sonipat, Indore, Bahadurgarh, and Rohtak are rapidly transforming into high-growth corridors, backed by robust infrastructure development and a rising demand for both residential and commercial spaces. 

“At Royal Green Realty, we see these cities not just as current investment destinations but as future-ready urban centres poised for sustained growth. The increasing interest from both domestic and global investors reinforces our belief in their long-term promise", he added.

The robust opening in 2025 indicates that the realty market in India is likely to remain upbeat, with private equity serving as the driving force for investment. The ongoing interest in investors indicates that the sector will be resilient and promising in the future months as well.