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Indian real estate recorded 39 deals worth USD 2.3 billion during the April-June quarter, according to Grant Thornton Bharat, marking a nearly threefold increase over the previous quarter. The rise was driven by a recovery in fundraising through IPOs and Qualified Institutional Placements (QIPs), along with strong private equity investments. Merger and acquisition activity also remained steady, while institutional investors continued to focus on income-generating commercial assets. The quarter also saw major REIT transactions, reflecting sustained investor interest in India's commercial real estate sector.
Indian real estate sector recorded 39 deals worth USD 2.3 billion during the April-June quarter, registering a nearly threefold increase compared to the previous quarter, according to Grant Thornton Bharat's latest Real Estate/REITs Dealtracker report. The improvement was mainly supported by a revival in fundraising through initial public offerings (IPOs) and Qualified Institutional Placements (QIPs), along with healthy private equity investment activity.
The report stated that the quarter witnessed a total of 39 transactions, including mergers and acquisitions (M&A), private equity (PE), venture capital (VC) investments, IPOs and QIPs, with an overall deal value of USD 2.3 billion.
Private equity remained the largest contributor to overall deal value, accounting for nearly half of the total value during the quarter. The consultancy said larger transaction sizes helped drive this growth, while capital market activity also gained momentum after remaining subdued in the previous quarter.
During the April–June period, the M&A segment recorded 22 transactions worth USD 367 million, reflecting a 10 per cent increase from USD 335 million reported in the corresponding period last year.
The PE and VC segment witnessed stronger growth, with 13 transactions valued at USD 1.157 billion during the quarter, compared to USD 458 million in the same period last year. The increase indicates continued investor interest in high-quality real estate assets despite evolving market conditions.
The report also noted that the quarter saw two IPOs and two QIPs, raising USD 381 million and USD 401 million, respectively. Together, these public market transactions mobilised USD 782 million, highlighting a recovery in fundraising activity after a slower preceding quarter.
According to Grant Thornton Bharat, Bagmane Prime Office REIT accounted for the largest IPO during the quarter with an issue size of USD 355 million. Meanwhile, Brookfield India Real Estate Trust and Bagmane Prime Offices REIT were among the key entities driving QIP fundraising through their issuances.
The report further highlighted that the biggest transaction of the quarter was the combined investment of USD 323 million by Mindspace Business Parks REIT and 360 One Alternates Asset Management Ltd in Radial IT Park Ltd, a company owned by the CapitaLand Group. The transaction underlined continued institutional interest in commercial office assets with stable income potential.
Commenting on the trend, Bhavik Vora, Partner at Grant Thornton Bharat, said the April–June quarter reflected growing confidence among institutional investors in India's commercial real estate market. He added that capital was increasingly moving towards high-quality, income-generating assets, which was evident from the sharp rise in private equity investments as well as the revival in REIT and capital market activity.
The latest findings also indicate that commercial real estate and REIT-backed assets continue to attract institutional capital, supported by stable office demand, long-term lease income and improving investor sentiment. The recovery in public market fundraising further suggests that developers and REITs are once again finding favourable conditions to raise capital for expansion and asset acquisition.
Source PTI
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