Real Estate Sector sees 25 deals costs $ 1.4 billion in September Quarter

According to a report by Grant Thornton Bharat “The real estate sector saw 25 deals valued $ 1.4 billion in the September quarter driven by Qualified Institutional Placement (QIP) activity, private equity in residential and commercial segments and real estate technology companies”.

The deals benefits were primarily driven by QIP activity, followed by private equity funding in residential and commercial segments with additional activity in real estate technologies.

It distinguishes eight deals which were sealed for $ 51 million in the merger and an acquisition M&A deal volumes reached an all-time high with 8 deals up from 14% from Q2 2024.Deal value declines 58% to $ 51 million, due to smaller ticket deals. The average deal size dropped from $ 17 million to $ 6 million.

As compared to Q2 2024, Q3 saw a 71% decline in overall PE and M&A deal value but a 5% increase in deal volume. Commercial development and real-estate technology businesses led deal activity in both M&A and PE spaces.

 The top M&A deal includes the Macrotech Developers Ltd’s acquisition of Palava Induslogic 4 Pvt Ltd for $17 million.

Q3 sights three inbound deals in the property development space and two outbound deals in student housing and online rental platform.

According to a report, “in the PEVC(private equity/ venture capital) there are 12 deals totaling $ 401 million’’.

“Deal volumes remained consistent with Q2 2024, indicating sustained interest in the sector. However, deal values declined 72% from $1.4 billion in Q2 2024. The top two deals accounted for $346 million, highlighting a concentration of value in fewer transactions,” it noted.

The top PE deal was Keppel’s $ 265 million investment in one paramount, a freehold Grade A Office complex in Chennai.

According to Shabala Shinde Partner, Grant Thornton Bharat says "Q3 2024 has witnessed a healthy recalibration in India's real estate market, with deal volumes remaining stable and commercial real estate driving growth. As investors seek long-term value in energy-efficient and tech-enabled developments, we're confident that the sector will continue to attract attention from institutional investors. The outlook for the coming months is optimistic, with India's real estate sector poised for sustained growth.”