Indian realty records 22 deals worth $1.8 bn in Q2 2024: Report

During Q2 2024, private equity investment activity saw a 33% increase in volume and a 757% increase in value.

The Indian real estate market is experiencing a dynamic transformation, marked by a significant surge in deal values and volumes, as per the Q2 2024 Real Estate Dealtracker Report by Grant Thornton Bharat. The first half of 2024 has already reached close to the total deal value of 2023 and has seen a marked increase in private equity investments and high-value transactions, reflecting renewed investor confidence and robust economic recovery. In Q2 2024 alone, 22 deals totalling $1.8 billion have underscored this momentum, driven by economic recovery and supportive government policies attractiveness to investors.

 

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, fuelled by sustainable and technology-driven advancements.

 

Q2 2024 was characterised 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. The top deal was Indiabulls Constructions’ acquisition of Sky Forest Projects for $78 million in the residential development sector. Inbound investments also gained traction, exemplified by Keppel Land’s minority stake in Smartworks, reflecting growing international interest in the Indian real estate market. 

 

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. This dramatic rise in PE deal values shows a significant shift towards major transactions in the market during this period. 

 

During Q2 2024, there were two IPOs with a combined issue size of $88 million, compared to no IPO activity in Q1 2024 and three IPOs totaling $527 million in 2023. On the other hand, QIP activity in Q2 2024 dropped 50% in volume and 79% in value, with only two QIPs totaling $126 million and no activities of greater than $100 million, compared to four in Q1 2024.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com
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