In a remarkable upswing, the Indian real estate market recorded deals rose massively, reaching worth $1.56 billion, during the April-June period of 2024.
As per reported by the Money Control, an almost eight-fold increase is seen in deals during the first quarter of the year.
Grant Thornton Bharat in it’s latest report, “Real Estate/REITs Dealtracker-Providing M&A and PE deal insights” reveals that the Indian real estate sector closed 19 deals valued at $1.56 billion in Q2 2024. This surge is primarily driven by substantial domestic transactions and a sharp rise in private equity (PE) investments.
Shabala Shinde, Partner and Real Estate Leader at Grant Thornton Bharat, noted, “In Q2 2024, the Indian real estate market has shown robust activity, with 19 deals totaling $1.6 billion. This surge reflects economic recovery, increased investor confidence, and supportive government policies, signaling a promising period for deal-making.”
Mergers and acquisitions (M&A) in the second quarter were valued at $123 million, compared to $32 million in the preceding quarter. Private equity deals saw a dramatic rise, jumping 8.5 times to $1.44 billion in Q2 2024 from $168 million in the first quarter. This substantial increase underscores the growing confidence of investors in the Indian real estate market.
Major Transactions in Q2 2024
The quarter’s largest transaction was Brookfield India Real Estate Trust’s acquisition of four Grade A commercial assets from Bharti Enterprises in Delhi for $723 million. This landmark deal significantly contributed to the overall transaction value and highlighted the demand for premium commercial properties in major urban centers.
The residential segment also saw significant investments. The Abu Dhabi Investment Authority and Kotak Alternative Investment Fund invested $240 million in Prestige Estates Projects. Additionally, Indiabulls Constructions acquired Sky Forest Projects from Blackstone for $78 million, further indicating the sector’s robust growth.
Grant Thornton Bharat’s report emphasizes that the top four PE deals alone accounted for 85% of the total deal value in Q2 2024. This concentration of high-value transactions reflects the strategic importance of large-scale investments in driving market growth.
The impressive growth in Q2 2024 sets a positive trajectory for the future of the Indian real estate market. With continued economic recovery, supportive government policies, and sustained investor confidence, the sector is poised for further expansion. The significant rise in both M&A and private equity deals indicates a healthy and vibrant market, attracting substantial capital and fostering development across various real estate segments.