India Market Monitor - Q4 2024

The fourth quarter of FY 2024 (October to December) 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 office sector witnessed strong momentum in leasing activity in Q4 2024, culminating in a record quarterly space take-up of 22.2 million sq. ft. This robust performance led to an all-time high absorption of 79 million sq. ft. in CY 2024, showcasing the unwavering confidence of occupiers in the country’s office market.

·       Industrial and Logistics (I&L) – The country’s I&L real estate sector witnessed robust leasing activity during the October to December period, registering ~47% Y-o-Y growth, driven primarily by strong demand from the third-party logistics (3PL) and fast-moving consumer goods (FMCG) segments.

·       Retail - India’s retail sector experienced robust growth in leasing and supply additions in the October-December 2024 quarter. The fashion and apparel category continued to dominate the retail market, accounting for ~38% of the overall leasing activity in CY 2024, primarily driven by mid-range, value fashion, and athleisure brands.

·       Residential – The country’s residential market demonstrated positive activity throughout 2024, culminating in a strong final quarter performance accentuated by seasonal festive demand. This surge propelled annual sales to surpass 300,000 housing units for the second consecutive year. Developers responded to this market momentum by introducing over 280,000 new residential units during the year.

·       Investments - Capital deployment towards India's real estate market reached a new peak of USD 11.4 billion in CY 2024, registering a growth of 54% year-over-year. These positive trends were primarily driven by a resurgence in investments into built-up assets and sustained momentum in the acquisition of land / development sites.

To delve deeper into our analysis of the country’s real estate landscape in Q4 2024, please click on the download button.