India's Real Estate Market Sees Unprecedented Growth in Q2 2024
The Indian real estate market is experiencing a dynamic transformation, with a significant surge in deal values and volumes, driven by economic recovery and supportive government policies.
Indian Real Estate MarketGrant Thornton BharatPrivate Equity InvestmentsCommercial DevelopmentResidential DevelopmentMergers And AcquisitionsReal Estate NewsJul 18, 2024
The residential sector is thriving, particularly with luxury apartments in metropolitan cities, while the logistics and warehousing sectors are booming. With the urban population projected to reach 600 million by 2031, the future of India's real estate market appears promising, fueled by sustainable and technology-driven advancements.
Q2 2024 was characterized by dominance of commercial development, residential development activity, private equity influence, and technological integration. Commercial development dominated the overall deal activity during the quarter, accounting for 37% of the volume and 75% of the value. This quarter featured various transaction sizes, with robust investment activity and strong interest in commercial properties.
Residential development also showed significant activity in Q2 2024, particularly with high-value deals, indicating strong investor confidence in the residential market. The real estate tech sector continued to attract PE investments, reflecting ongoing innovation and technology integration within the real estate sector.
In India's real estate sector, the Mergers and Acquisitions (M&A) activity saw a total of seven deals at $123 million in Q2 2024, a 133% increase in volume and a 248% increase in value from the previous quarter. M&A activity during the quarter was fueled by domestic consolidations, contributing to 71% of the volume and 96% of the value.
During Q2 2024, private equity investment activity saw a 33% increase in volume and a 757% increase in value, with 12 deals at $1.4 billion. The average deal size in the quarter increased to $120 million from just $18.7 million in the previous quarter, driven by four high-value deals totaling $1.3 billion, compared to none in Q1 2024.
Information Grant Thornton Bharat is a leading assurance, tax, and advisory firm that provides insights and expertise to businesses across various industries.\n Housing is a leading real estate platform that provides comprehensive information and services to homebuyers, sellers, and industry professionals.
Frequently Asked Questions
What was the total value of deals in Q2 2024 in the Indian real estate market?
$1.8 billion
What was the percentage increase in private equity investment activity in Q2 2024?
757%
What is the projected urban population of India by 2031?
600 million
What was the total value of M&A deals in Q2 2024 in the Indian real estate sector?
$123 million
How many IPOs were there in Q2 2024 in the Indian real estate sector?
2
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