Real Estate Deals Hit Record High in Q3: Report

New Delhi, Oct 14 (PTI) The Indian real estate sector saw 25 deals worth USD 1.4 billion in September quarter, driven by Qualified Institutional Placement (QIP) issues launched by developers, according to a report by Grant Thornton.

Consulting firm Grant Thornton Bharat released the report 'Real Estate/ REITs Dealtracker -- Providing M&A and PE deal insights' on Monday.

"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," the report said.

The deal 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 technology companies.

Of the overall activities, the consultant reported eight deals at USD 51 million in merger & acquisition (M&A) category.

In PE/VC (private equity/venture capital) category, there were 12 deals totalling USD 401 million.

"Private equity funding saw a sharp decline in deal values from USD 1.4 billion in Q2 to USD 0.4 billion in the September quarter. However, the volume of deals remained consistent, indicating sustained interest in smaller, more targeted investments," the consultant said.

During the third quarter, there was one IPO (initial public offering) of USD 49 million and four QIPs at USD 940 million, it said.

The September quarter (Q3) witnessed increased capital market activity.

"While IPOs remained consistent, with one raising USD 49 million, the standout was the surge in QIP activity, with four deals totalling USD 940 million—nearly six times the value in Q2, owing to one high-value transaction - Prestige Estates raising USD 602 million," the consultant said.

This shows growing confidence in real estate firms' ability to access public markets, it added.

"Looking ahead, while there is expectation for stronger deal activity in Q4 (October-December), recent volatility in the Sensex and broader capital markets could temper short-term investor enthusiasm," said Shabala Shinde, Partner and Real Estate Leader, Grant Thornton Bharat.