India’s luxury real estate market is demonstrating a fascinating dichotomy: while overall deal activity saw a slowdown in Q2 2025, the ultra-luxury segment continues to defy trends with landmark transactions. This was underscored by the recent sale of a Bandra West apartment by Bollywood superstar Salman Khan and an astonishing ₹100 crore-plus (approximately $12 million USD) penthouse and duplex deal in South Mumbai, even as broader real estate investments show signs of recalibration.
Salman Khan’s Bandra West Sale Highlights Enduring Appeal of Prime Locations
In a transaction registered this July, Salman Khan reportedly sold an apartment in the prestigious Shiv Asthan Heights in Bandra West for ₹5.35 crore (approximately $642,000 USD). The 122.45 square meter (1,318 sq ft) apartment, which includes three dedicated car parking spaces, incurred a stamp duty of ₹32.01 lakh (approximately $38,412 USD) and registration charges of ₹30,000 (approximately $360 USD).
Bandra West remains a highly coveted address in Mumbai, known for its blend of premium residential properties, historic bungalows, and boutique commercial developments. Its excellent connectivity and proximity to key business hubs like Bandra Kurla Complex (BKC) and the international airport consistently drive its appeal for both residents and investors, regardless of broader market fluctuations.
Piramal Mahalaxmi Secures Record-Breaking Ultra-Luxury Deal
Further solidifying the strength of the ultra-prime segment, Piramal Realty announced the sale of a penthouse and duplex apartments at its flagship Piramal Mahalaxmi development for over ₹100 crores (approximately $12 million USD) in a single transaction. This landmark deal represents the highest-ever single buyer transaction within the project’s “Magnificent Seven Penthouse Collection.”
The residences, spanning over 13,000 sq ft of carpet area on the highest floors of the Central Tower, offer expansive views of the Mahalaxmi Racecourse and the Arabian Sea. Mr. Abhijeet Maheshwari, CEO of Piramal Realty, emphasized that such transactions validate their commitment to delivering not just residences, but a “thoughtful lifestyle that resonates with evolved buyers.” This significant sale aligns with the 28 per cent year-on-year growth witnessed in India’s luxury housing segment in Q1 2025 across the top seven cities, according to CBRE South Asia.
Broader Market Sees Q2 Slowdown, But Capital Markets Poised for Resurgence
While individual high-value deals make headlines, the overall Indian real estate sector experienced a notable slowdown in deal activity during Q2 2025. The Grant Thornton Bharat Real Estate Q2 2025 Dealtracker reported 17 transactions valued at USD 1.3 billion, encompassing IPOs and Qualified Institutional Placements (QIPs). Excluding public market activity, only 13 deals worth USD 775 million were recorded. Overall, deal volumes fell by 54 per cent quarter-on-quarter, and values declined by 35 per cent. Compared to Q2 2024, volumes dipped by 35 per cent, and deal values were halved, indicating a strategic shift towards selective, large-ticket investments.
Despite this moderation, the market witnessed a strong return of capital markets, with two IPOs raising USD 243 million and two QIPs totaling USD 245 million. Commercial development remained the cornerstone of investment, accounting for 62 per cent of the total deal value, as institutional capital gravitated towards resilient, income-generating assets.
Shabala Shinde, Partner and Real Estate Industry Leader at Grant Thornton Bharat, noted, “The first half of the year reflects a sector recalibrating for long-term strength. While overall deal values moderated, institutional capital continues to flow steadily into commercial platforms… 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.”
M&A and PE Investments Shift Towards High-Value and Institutional Deals
Mergers and Acquisitions (M&A) in the real estate sector saw a decline in volume, dropping 45 per cent from the previous quarter to just six deals, the lowest since Q2 2024. However, deal values rebounded strongly, surging 42 per cent quarter-on-quarter to USD 195 million, primarily driven by Max Estates Ltd’s USD 161 million acquisition of Boulevard Projects Pvt Ltd. This highlights a focus on larger, strategic transactions and robust domestic consolidation.
Private Equity (PE) activity also slowed in Q2 2025, with deal volumes plummeting 59 per cent to just seven transactions and values declining 45 per cent to USD 580 million. This marked the sector’s second-lowest quarterly volume since Q2 2023. Nevertheless, a significant USD 562 million investment in June, spearheaded by Blackstone’s USD 378 million acquisition of South City Projects Ltd, underscores sustained institutional interest in commercial development assets.
Looking Ahead: REITs and Capital Markets to Drive Future Growth
The resurgence in capital market activity, particularly with the renewed interest in REITs (Real Estate Investment Trusts) and the growing momentum in the Small and Medium Real Estate Investment Trusts (SM REITs) segment, suggests a cautious but steady re-engagement with listed instruments. This lays the groundwork for deeper capital market integration in the second half of 2025, potentially offsetting the slower pace of traditional deal-making observed in Q2. The market appears to be transitioning towards a more mature, innovation-led cycle of investment, with a clear distinction between the resilient ultra-luxury segment and broader real estate activity.
