India Market Monitor – Q3 2024

The third quarter of 2024 witnessed a continuation of the positive trajectory observed in India's real estate market. Several key trends emerged during this period, reflecting the sector's resilience and growth potential.

- Office: India’s robust off­ice leasing activity in the first half of the year sustained its momentum into the third quarter, achieving a remarkable space take-up of 19 million sq. ft. This strong performance contributed to a nine-month record high in leasing at 53.8 million sq. ft., showcasing continued confidence of occupiers in the country’s o­ffice market.

- Industrial & Logistics: The I&L sector witnessed an uptick in leasing activity on a quarterly basis in Q3 2024, with space absorption of 11.4 million sq. ft. While supply moderated compared to the previous quarter, it is anticipated to accelerate going forward with the launch of several prominent projects backed by institutional investors.

- Retail: Leasing activity in the country’s retail sector remained largely steady in the third quarter of 2024. The ongoing introduction of quality supply is expected to continue stimulating an uptick in overall space take-up in the coming quarters.

- Residential: The country’s housing market witnessed a moderation in the third quarter of 2024. However, the sector demonstrated strong performance in absolute terms, with over 225,000 units sold during the first nine months of the year. This sustained positive sentiment has encouraged developers to launch new projects and additional phases, resulting in approximately 215,000 new units entering the market in 9M 2024.

- Investments: Investment activity in India’s real estate market scaled a new peak in 9M 2024, on the back of a resurgence in capital deployment in Q2 2024. Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters, while institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows.

To delve deeper into our analysis of the country’s real estate landscape in Q3 2024, please click on the download button.