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The Indian real estate market is undergoing a transformative shift in 2024, marked by a significant increase in deal values and volumes, driven by renewed investor confidence, economic recovery, and high-value transactions. This upswing signals a promising future for the sector, with strong growth in residential and logistics sectors, attractive returns, and transparent regulations, setting the stage for sustained activity and long-term growth.
Key insights from the Real Estate/REITs Dealtracker Q2 2024:
PE activity dominate: Compared to 2023, the first half of 2024 has seen a marked increase in overall deal values and volumes. The significant rise in private equity investments, particularly in high value projects, indicates a growing confidence among investors. Q2 2024 recorded the second-highest quarterly PE values ever for the sector, driven by four high-value deals. The average deal size in the PE segment saw a significant rise, underscoring the focus on larger, more impactful investments.
Property market boost: In Q2 2024, the Indian real estate market have shown robust activity, with 19 deals totalling USD 1.6 billion. This surge reflects economic recovery, increased investor confidence, and supportive government policies, signaling a promising period for deal making. The residential real estate sector continues to witness robust growth, supported by growing demand for luxury apartments in metropolitan cities.
Growing investor appeal: Investor interest is increasing from both local and international investors, driven by attractive returns and transparent regulations. The introduction of small and medium REITs is also expected to attract more retail investors, offering regular income and capital gains with the stability of real estate as an asset. With the urban population projected to reach 600 million by 2031, the demand for residential, commercial, and infrastructural developments will continue to rise.
