Q3 2024 Sees Robust Real Estate Deals Worth $1.4 Billion in India
The third quarter of 2024 witnessed a significant surge in India's real estate market, with 25 deals valued at $1.4 billion. The sector saw a mix of QIP activity, private equity funding, and real estate technology advancements, driving growth and confiden
Real EstateQipPrivate EquityMaCommercial Real EstateReal Estate NewsOct 14, 2024
The deal values were primarily fueled by QIP activity, which saw four deals totaling $940 million. This represents a nearly six-fold increase in QIP values compared to Q2 2024. The standout QIP transaction was Prestige Estates' $602 million deal, which significantly contributed to the quarterly growth. Additionally, there was one Initial Public Offering (IPO) worth $49 million during the quarter.
Private equity funding also played a crucial role, with 12 PE deals totaling $401 million. However, the value of private equity deals declined by 72% from $1.4 billion in Q2 2024, indicating a shift towards smaller, more targeted investments. The top two PE deals accounted for $346 million, highlighting the concentration of value in fewer transactions. The most notable PE deal was Keppel's $265 million investment in One Paramount, a freehold Grade A office complex in Chennai.
The merger and acquisition (M&A) segment saw an all-time high with 8 deals, totaling $51 million. This represents a 14% increase in deal volumes from Q2 2024. However, the average deal size dropped from $17 million to $6 million, indicating a trend towards smaller M&A transactions. The top M&A deal was the acquisition of Palava Induslogic 4 Pvt Ltd by Macrotech Developers Ltd for $17 million.
Commercial development and real estate technology businesses led the deal activity in both the M&A and PE spaces. Q3 2024 also saw three inbound deals in the property development space and two outbound deals in the student housing and online rental platform sectors.
Shabala Shinde, Partner at Grant Thornton Bharat, commented on the quarter's performance “Q3 2024 has witnessed a healthy recalibration in India's real estate market, with deal volumes remaining stable and commercial real estate driving growth. As investors seek long-term value in energy-efficient and tech-enabled developments, we're confident that the sector will continue to attract attention from institutional investors. The outlook for the coming months is optimistic, with India's real estate sector poised for sustained growth.”
The robust QIP activity demonstrates growing confidence in real estate firms' ability to access public markets, driving further investment and development in the sector. Despite the decline in private equity deal values, the consistent volume of deals indicates sustained interest in the sector, particularly in smaller, more targeted investments.
Overall, the third quarter of 2024 has set a positive tone for the Indian real estate market, with a strong focus on commercial development and technological advancements. The sector is expected to continue attracting institutional and private investments, driving growth and innovation in the coming months.
Frequently Asked Questions
What was the total value of real estate deals in Q3 2024 in India?
The total value of real estate deals in Q3 2024 in India was $1.4 billion.
What drove the deal values in the Indian real estate sector in Q3 2024?
The deal values were primarily driven by Qualified Institutional Placement (QIP) activity, private equity funding in residential and commercial segments, and real estate technology companies.
How many deals were recorded in the M&A category in Q3 2024?
In Q3 2024, there were 8 deals recorded in the M&A category.
What was the standout QIP transaction in Q3 2024?
The standout QIP transaction in Q3 2024 was Prestige Estates' $602 million deal.
What is the outlook for the Indian real estate sector according to Grant Thornton Bharat?
The outlook for the Indian real estate sector is optimistic, with sustained growth expected due to long-term value in energy-efficient and tech-enabled developments.
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