India saw 25 deals worth $1.3 billion in the real estate sector in the July-September period (Q3), maintaining strong deal volumes and marking an all-time high in deal numbers and second-highest values since Q2 2023, a report showed on Monday. 

Deal values were primarily driven by the qualified institutional placement (QIP) activity, private equity funding in residential and commercial segments, and real estate technology companies, according to the report by Grant Thornton Bharat.

Compared to Q2 2024, the third quarter saw a 71 per cent decline in overall private equity (PE) and mergers and acquisitions (M&A) deal value but a 5 per cent increase in deal volume.

“Year-over-year comparison shows a 54 per cent increase in deal volumes and a 41 per cent decline in values compared to Q3 2023,” said the report.

Q3 2024 saw three inbound deals in the property development space and two outbound deals in the student housing and online rental platform sectors.

PE activity in Q3 2024 saw 12 deals valued at $401 million. Deal volumes remained consistent with Q2 2024, indicating sustained interest in the sector. The top two deals accounted for $346 million, highlighting a concentration of value in fewer transactions.

Despite decline in funding values over Q2 2024, deal values continued to outperform those in both Q1 2024 and Q3 2023, according to the report.

Q3 2024 saw one IPO raising $49 million, maintaining consistency with previous quarters. The quarter witnessed a significant surge in QIPs, with four deals totalling $940 million.

“This represents a nearly six-fold increase in QIP values compared to Q2 2024,” the report mentioned.

The robust QIP activity demonstrates growing confidence in real estate firms’ ability to access public markets.

Renewed PE and M&A activity in the latter part of Q3 signals potential for increased momentum in Q4 2024, the report noted.