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India’s real estate sector achieved an unprecedented milestone in the July-September quarter (Q3), with 25 deals valued at $1.3 billion, according to a report by Grant Thornton Bharat released on Monday. This marks the highest number of deals ever recorded in the sector and the second-highest total value since Q2 2023.
The surge in deal values was primarily driven by activities related to qualified institutional placements (QIPs), as well as private equity funding in both residential and commercial segments, including real estate technology firms.
While Q3 experienced a 71% drop in overall private equity (PE) and mergers and acquisitions (M&A) deal values compared to Q2 2024, deal volume saw a slight increase of 5%. Year-over-year comparisons indicate a 54% rise in deal volumes, although values declined by 41% compared to Q3 2023.
During this quarter, there were three inbound deals in property development and two outbound deals in the student housing and online rental platform sectors. PE activity remained robust, with 12 deals totaling $401 million, maintaining consistent volume with Q2 2024. Notably, the two largest deals accounted for $346 million, reflecting a trend of concentrated value in fewer transactions.
Despite the decline in funding values from Q2 2024, Q3 2024’s deal values surpassed those recorded in both Q1 2024 and Q3 2023. Additionally, one initial public offering (IPO) raised $49 million, in line with previous quarters, while QIPs experienced a remarkable surge with four deals amounting to $940 million—a nearly six-fold increase compared to Q2 2024.
The strong QIP activity underscores a growing confidence in real estate firms’ ability to tap into public markets. The report suggests that renewed PE and M&A activity toward the end of Q3 could signal an uptick in momentum heading into Q4 2024.
