India Witnesses Record Real Estate Deal Numbers in Q3 2024
New Delhi: India recorded 25 real estate deals worth $1.3 billion in the July-September period (Q3), marking an all-time high in deal numbers and the second-highest values since Q2 2023, according to a report by Grant Thornton Bharat.
Real EstateQipPrivate EquityMergers And AcquisitionsDeal VolumesReal EstateOct 14, 2024
Compared to the previous quarter, Q2 2024, the third quarter saw a 71% decline in overall PE and mergers and acquisitions (M&A) deal values but a 5% increase in deal volume. Year-over-year comparisons show a 54% increase in deal volumes and a 41% decline in values compared to Q3 2023.
Q3 2024 experienced three inbound deals in the property development space and two outbound deals in the student housing and online rental platform sectors. Private equity activity saw 12 deals valued at $401 million, maintaining consistent deal volumes with Q2 2024. The top two deals alone accounted for $346 million, indicating a concentration of value in fewer transactions.
Despite the decline in funding values over Q2 2024, deal values continued to outperform those in both Q1 2024 and Q3 2023. The quarter also saw one initial public offering (IPO) raising $49 million, aligning with previous quarters. A significant surge in QIPs, with four deals totaling $940 million, was noted. This represents a nearly six-fold increase in QIP values compared to Q2 2024.
The robust QIP activity underscores the growing confidence in real estate firms’ ability to access public markets. Renewed PE and M&A activity in the latter part of Q3 signals potential for increased momentum in Q4 2024, the report concluded.
Grant Thornton Bharat is a leading professional services firm in India, providing a wide range of services including audit, tax, advisory, and consulting to various industries, including real estate. The firm’s expertise and insights are highly regarded in the business community, making its reports a valuable resource for stakeholders in the real estate sector.
Frequently Asked Questions
How many real estate deals were recorded in Q3 2024 in India?
India recorded 25 real estate deals in Q3 2024.
What was the total value of real estate deals in Q3 2024?
The total value of real estate deals in Q3 2024 was $1.3 billion.
Which activities primarily drove deal values in Q3 2024?
Deal values in Q3 2024 were primarily driven by qualified institutional placement (QIP) activities, private equity (PE) funding in residential and commercial segments, and real estate technology companies.
What was the change in deal values and volumes compared to Q2 2024?
Compared to Q2 2024, deal values in Q3 2024 saw a 71% decline, while deal volumes increased by 5%.
What does the report by Grant Thornton Bharat suggest about the future of real estate deals in India?
The report suggests that renewed private equity and M&A activity in the latter part of Q3 2024 signals potential for increased momentum in Q4 2024.
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