The Indian real estate sector during the July-September quarter of 2024 stood witness to an extraordinary spurt in deal activity that set a record time with 25 deals amounting to a whopping $1.3 billion. This is also a performance that remains not weak on deal volumes and stands as the highest value since Q2 2023, as seen by Grant Thornton Bharat.
Growth in deal values was primarily spurred by high activity in qualified institutional placements (QIPs), apart from private equity investments in both residential and commercial estates, as well as in real estate technology companies. The number of deals increased by 5% despite an unprecedented 71% plummeting of the private equity deals in terms of PE and M&A aggregate volume compared to Q2 2024.
Looking at it from a year-over-year perspective, the report reveals a 54% surge in the number of deals and a 41% decline in value compared to Q3 2023. In this quarter, three inbound deals were recorded in the development of property, besides two outbound transactions channeled towards student housing and online rental platforms.s
Q3 2024 closed at 12 deals totaling $401 million in the PE space, on a par with the Q2 quarter. What is noteworthy, however, is that two deals alone account for $346 million-increasingly a trend toward fewer, high-value deals.
If not as strong as Q2 2024 deal values were in Q3 2024, deal values were still up from both Q1 2024 and Q3 2023. One IPO was also raised in the quarter for $49 million, in line with trends seen in previous quarters.
QIPs jumped four deals worth $940 million-a nearly six-fold increase compared with Q2 2024, and a notable highlight. It reflects the increasing confidence of real estate firms regarding access to public markets.
Going forward, renewed activity in both PE and M&A during the last portion of Q3 would therefore imply an uptick in momentum as the sector approaches Q4 2024.
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