India’s real estate sector recorded its highest-ever number of deals in the July-September quarter (Q3) of 2024, with 25 transactions totaling $1.3 billion, according to a report by Grant Thornton Bharat. This marks a significant achievement in deal numbers, while the value of deals was the second-highest since Q2 2023.
Despite a 71% drop in private equity (PE) and mergers and acquisitions (M&A) deal value compared to Q2 2024, the report noted a 5% increase in deal volume. The rise in activity was driven by qualified institutional placements (QIPs), private equity funding in residential and commercial real estate, and investments in real estate technology firms.
Compared to Q3 2023, the latest quarter saw a 54% jump in deal volumes, although deal values declined by 41%.
Key highlights of Q3 2024 include three inbound deals in property development and two outbound deals related to student housing and online rental platforms. Private equity activity remained robust, with 12 deals valued at $401 million. The top two deals alone accounted for $346 million, indicating a concentration of larger transactions.
Although overall funding values were lower than in Q2 2024, Q3 2024 still outpaced Q1 2024 and Q3 2023 in deal values. The quarter also saw one IPO raise $49 million, in line with earlier quarters.
One of the standout trends was a sharp rise in QIP activity, with four transactions totaling $940 million, nearly six times the QIP values seen in Q2 2024. This uptick in QIPs reflects growing confidence in the ability of real estate companies to raise funds from public markets.
Looking ahead, the report suggests that renewed PE and M&A activity toward the end of Q3 2024 could lead to increased deal momentum in Q4 2024.
© 2023 Rera News. All rights reserved.