Is This Real Estate's Breakout Quarter? Q3 Sees 42 Deals & $2.9B Surge

India’s real estate sector recorded a landmark quarter, clocking 42 deals worth $2.9 billion in Q3 2025—the highest since the pandemic era, according to a report by Grant Thornton Bharat. Further, a significant increase in marquee M&A and private equity investments was also noted, the report said. Excluding public market transactions, 33 private deals totaled $1.8 billion, indicating a renewed investor interest in commercial and retail real estate segments.

The surge signals not just a rebound, but a renewal of trust in the country’s property market. What’s most telling is the diversity of the transactions, from private equity inflows and M&As to large-scale asset acquisitions, cutting across both residential and commercial verticals.

Private equity (PE) saw a strong rebound with 12 deals totalling $859 million, marking a 71 percent increase in volume and a 48 percent rise in value compared to the previous quarter.

This isn’t a short-lived spike driven by sentiment; it’s a reflection of strengthened market fundamentals, deeper institutional participation, and a maturing ecosystem where investors see Indian real estate as a long-term, stable asset class.

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Delving deeper into the composition of this $2.9 billion surge reveals a market firing on multiple mechanisms. Commercial assets continue to attract steady inflows, with institutional investors and REIT-backed funds zeroing in on Grade A office and retail spaces that promise stable, long-term yields. As per the report, the commercial development sector continued its dominance, contributing 70 percent of deal volume and 91 percent of deal value, as four of the top 10 deals came from these sectors.

On the residential front, developers are increasingly joining hands with private equity players to co-create luxury and mid-income projects, segments that balance aspiration with absorption.

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."

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.”

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.”

Meanwhile, mergers and acquisitions are reshaping the industry’s structure, enabling developers to scale faster and strengthen liquidity. What’s equally notable is the rise in domestic capital participation, reflecting a deeper, homegrown confidence that goes well beyond foreign inflows.

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 prioritize design, location, and credibility.”

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Moreover, from an investor’s lens, the sentiment today is rooted in stability over speculation. Institutional money is returning to the Indian market with long-term investment timeframes, indicating renewed confidence in the sector's strength and transparency. Concurrently, local investors, who had remained prudent for so long, are now increasingly using real estate as a market volatility and inflationary hedge.

Thus, Q3 2025 stands as a defining moment in India’s real estate capital cycle. The momentum built through these record investments is expected to carry forward into Q4, with sustained inflows, strategic M&A activity, and a growing emphasis on sustainable, execution-driven project pipelines.