Real Estate/REITs Dealtracker: Q3 2024

The Indian real estate market activity remained robust in Q3 2024, driven by private equity transactions. Despite a decline in deal value, the volume of deals suggests a resilient market underpinned by strong fundamentals. Strategic mid-sized transactions and capital market funding gained traction. Commercial real estate, particularly office spaces and warehousing, drew investor attention. The latest edition of Real Estate/REITs Dealtracker provides an in-depth analysis of Q3 deal activity, highlighting emerging trends and investor interests in the Indian real estate sector.

Key insights from the Real Estate/REITs Dealtracker Q3 2024:

• Deal activity surge: The quarter maintained strong deal volumes with 25 deals, marking an all-time high in terms of deal volumes and the second-highest values since Q2 2023. This quarter’s values were primarily driven by the QIP activity, followed by private equity funding in the residential and commercial segments, with additional activity in real estate tech companies.
• Smaller deals dominate: M&A volumes reached an all-time high, witnessing an increasing trend from the past two quarters while the values took a dip this quarter on the back of the dominance of smaller ticket deals, reflected in the average deal size reducing from USD 17 million to USD 6 million.
• Volume stability amid value drop: Private equity funding in Q3 2024 saw a sharp decline in deal values from USD 1.4 billion in Q2 to USD 0.4 billion this quarter. However, the volume of deals remained consistent, indicating sustained interest in smaller, more targeted investments.