Indian Real Estate Market Sees Unprecedented Growth in Q2 2024
The Indian real estate market witnessed a significant surge in deals worth $1.56 billion during the April-June period, marking an eight-fold rise from the preceding quarter.
Indian Real EstatePrivate EquityGrant Thornton BharatBrookfield India Real Estate TrustKnight Frank IndiaReal EstateJul 18, 2024
In its report, Real Estate/REITs Dealtracker, Grant Thornton Bharat mentioned that the Indian real estate market witnessed 19 deals valued at $1.56 billion during the second quarter of this calendar year. Shabala Shinde, Partner and Real Estate Leader, Grant Thornton Bharat, stated that the surge reflects economic recovery, increased investor confidence, and supportive government policies, signalling a promising period for deal-making.
The report highlighted a robust growth trajectory in overall deal activity, primarily driven by substantial increases in domestic transactions and private equity (PE) investments. The M&A deals during the second quarter were valued at $123 million, as against $32 million in the preceding quarter. The private equity deals jumped 8.5 times to $1,439 million in April-June 2024 from $168 million in the preceding quarter.
Four top deals, all from the PE segment, alone accounted for 85 per cent of the total deal value. Brookfield India Real Estate Trust's acquisition of four grade A commercial assets from Bharti Enterprises in Delhi for $723 million marked the largest transaction of the quarter. In the residential development segment, Abu Dhabi Investment Authority and Kotak Alternative Investment Fund invested $240 million in Prestige Estates Projects, and Indiabulls Constructions acquired Sky Forest Projects from Blackstone for $78 million.
Knight Frank India's report, Trends in Private Equity Investment in India H1 2024, stated that PE investments totalling $3 billion have been made in Indian real estate in the first half of 2024, recording an increase of 15% YoY from $2.6 bn in H1 2023. The warehousing sector accounted for the largest share of 52% of total PE investments in January-June 2024, followed by residential (29%) and office (20%). PE investments in the residential sector also saw a significant increase of over 209% to $854 million in H1 2024 from $277 mn in H1 2023.
Information
Grant Thornton Bharat is a consulting firm that provides M&A and PE deal insights. Brookfield India Real Estate Trust is a leading real estate investment trust. Bharti Enterprises is a business conglomerate. Prestige Estates Projects is a real estate developer. Kotak Alternative Investment Fund is an investment firm. Indiabulls Constructions is a real estate developer. Blackstone is a private equity firm. Knight Frank India is a real estate consultancy firm.
Grant Thornton Bharat is a leading consulting firm that provides M&A and PE deal insights. Brookfield India Real Estate Trust is a leading real estate investment trust. Bharti Enterprises is a business conglomerate. Prestige Estates Projects is a real estate developer. Kotak Alternative Investment Fund is an investment firm. Indiabulls Constructions is a real estate developer. Blackstone is a private equity firm. Knight Frank India is a real estate consultancy firm.
Frequently Asked Questions
What was the total value of deals in the Indian real estate market in Q2 2024?
The total value of deals in the Indian real estate market in Q2 2024 was $1.56 billion.
What was the growth rate of private equity deals in Q2 2024 compared to the preceding quarter?
The private equity deals jumped 8.5 times to $1,439 million in April-June 2024 from $168 million in the preceding quarter.
What was the largest transaction of the quarter?
Brookfield India Real Estate Trust's acquisition of four grade A commercial assets from Bharti Enterprises in Delhi for $723 million marked the largest transaction of the quarter.
What was the growth rate of PE investments in the residential sector in H1 2024 compared to H1 2023?
PE investments in the residential sector saw a significant increase of over 209% to $854 million in H1 2024 from $277 mn in H1 2023.
What was the total value of PE investments in Indian real estate in the first half of 2024?
The total value of PE investments in Indian real estate in the first half of 2024 was $3 billion.
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