Indian real estate market saw deals worth USD 1.56 billion during the April-June period, a jump of nearly eight-fold from the preceding quarter, according to Grant Thornton’s report.
During the preceding January-March quarter, deals worth only USD 200 million were closed.
In its report Real Estate/REITs Dealtracker-Providing M&A and PE deal insights, consulting firm Grant Thornton Bharat mentioned that the Indian real estate market witnessed 19 deals valued at USD 1.56 billion during the second quarter of this calendar year.
Shabala Shinde, Partner and Real Estate Leader, Grant Thornton Bharat, said, In Q2 2024, the Indian real estate market has shown robust activity, with 19 deals totalling USD 1.6 billion. This is primarily driven by four high-value transactions. This surge reflects economic recovery, increased investor confidence, and supportive government policies, signalling a promising period for deal-making.”
The consultant noted that there has been a robust growth trajectory in overall deal activity, primarily driven by substantial increases in domestic transactions and private equity (PE) investments.
As per the report, the M&A (merger and acquisition) deals during the second quarter were valued at USD 123 million, as against USD 32 million in the preceding quarter.
The private equity deals jumped 8.5 times to USD 1,439 million in April-June 2024 from USD 168 million in the preceding quarter.
Grant Thornton’s report highlighted that four top deals (all from the PE segment) alone accounted for 85 per cent of the total deal value.
Brookfield India Real Estate Trust’s acquisition of four grade A commercial assets from Bharti Enterprises in Delhi for USD 723 million marked the largest transaction of the quarter, it added.
In the residential development segment, Abu Dhabi Investment Authority and Kotak Alternative Investment Fund invested USD 240 million in Prestige Estates Projects, and Indiabulls Constructions acquired Sky Forest Projects from Blackstone for USD 78 million, the report said.
Knight Frank India in its latest report – Trends in Private Equity Investment in India: H1 2024, stated that PE investments totalling USD 3 billion (bn) have been made in Indian real estate in the first half of 2024 recording an increase of 15% YoY from USD 2.6 bn in H1 2023.
Warehousing sector accounted for largest share of 52% of total PE investments in January – June 2024, followed by residential (29%) and office (20%). PE investments in the residential sector also saw a significant increase of over 209% to USD 854 million (mn) in H1 2024 from USD 277 mn in H1 2023.
