The Indian real estate sector witnessed significant growth in Q3 2024, driven by key funding sources such as Private Equity (PE) and Qualified Institutional Placements (QIP). This surge in deals, mergers, and acquisitions, along with increased capital market activity, has set the stage for a promising future for the sector.
According to a report from Grant Thornton Bharat, the sector recorded deals worth $1.4 billion in Q3 2024, powered primarily by record QIP inflows.
Key Findings from the Report
Grant Thornton Bharat’s Real Estate/REITs Dealtracker: Q3 2024 provides a detailed analysis of the sector’s performance. The report highlights that 25 deals were completed during the quarter, amounting to $1.4 billion, with QIP launched by various developers driving much of the deal value.
Additionally, the report notes that deal volumes hit an all-time high, while total deal value was the second-highest since Q2 2023. PE funding, particularly in the residential and commercial segments, also played a significant role in boosting deal value. Real estate technology companies emerged as key beneficiaries in this funding round.
Major Insights from the Report
Some of the report’s key findings include:
- Mergers and Acquisitions: The sector witnessed eight deals valued at $51 million.
- Private Equity and Venture Capital: This segment saw 12 deals worth $401 million, a steep drop from $1.4 billion in Q2 2024.
- Capital Market Activity: Four QIPs were launched, with a total value of $940 million, along with one IPO valued at $49 million
- Investment Trends: Warehouses, logistics parks, and student rentals continued to attract steady investment.
What’s In It for Investors?
According to Shabala Shinde, the author of the Real Estate/REITs Dealtracker report, both residential and commercial real estate segments continued to capture institutional investor interest. Commercial real estate, particularly office spaces and warehouses in major metropolitan areas, led the growth.
In addition, private equity investments in office spaces saw strong demand, while M&A activity in the warehouse segment increased significantly. The emergence of mid-sized and small REITs (Real Estate Investment Trusts) has also been a major trend, helping smaller players meet their funding needs.
What’s Next?
The outlook for Q4 remains optimistic, with expectations of even stronger deal activity in both value and volume terms. However, recent market volatility and geopolitical tensions could dampen short-term investor sentiment. That said, the growing focus on sustainability and smart building technologies is expected to drive long-term value in energy-efficient and tech-driven developments.
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*This article is for informational purposes only. This is not investment advice.
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