Indian Real Estate Deals Surge 8-Fold in Q2: Grant Thornton

New Delhi, Jul 18 (PTI) Indian real estate market saw deals worth USD 1.56 billion during April-June period, a jump of nearly eight-fold from the preceding quarter, according to Grant Thornton report.

In its report 'Real Estate/REITs Dealtracker-Providing M&A and PE deal insights, consulting firm Grant Thornton Bharat mentioned that Indian real estate market witnessed 19 deals valued at USD 1.56 billion during the second quarter of this calendar year.

During the preceding January-March quarter, deals worth only USD 200 million were closed.

"In Q2 2024, the Indian real estate market have 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," said Shabala Shinde, Partner and Real Estate Leader at Grant Thornton Bharat.

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 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.