Unravelling the Trends Shaping India's Real Estate Market in 2024

As we navigate the ever-changing landscape of India's real estate market, 2024 continues to emerge as a year of significant transformation. Our latest report dissects the major trends influencing core and alternate real estate sectors during the year, aiming to offer valuable insights for industry stakeholders.

 

- Underscoring the unwavering confidence of both global and domestic occupiers, India's office market exceeded expectations in 2024, registering the highest January to September leasing activity on record. Office absorption is projected to maintain its robust momentum in the country, reaching an estimated 70 million sq. ft., with about 58-60 million sq. ft. of new completions expected by the end of 2024. Notably, space take-up by GCCs is expected to account for 35-40% of the total office leasing during the year.

 

- India’s residential market, supported by strong fundamentals, has maintained its buoyancy in the first nine months of 2024. Sales during this period exceeded 225,000 units, fuelled by approximately 215,000 new launches. Significantly, the premium and luxury housing categories contributed 16% to the overall housing sales from January to September 2024, up from 6% in 2019. Given the sector’s sustained performance, we forecast both sales and new launches of housing units to remain elevated in the upcoming quarters.

 

- Other core sectors also exhibited interesting trends. While only limited fresh retail space was added during the first nine months of the year, the country’s retail space take-up remained resilient, as about 4.5 million sq. ft. was absorbed during this period.

 

- On the other hand, leasing by the industrial and logistics (I&L) sector reached 27.5 million sq. ft., dominated by third-party logistics (3PL) firms, which accounted for approximately 39% of the total absorption.

 

- The investments front witnessed a strong resurgence with capital inflows into built-up office assets and a strong acquisition pipeline for land in the residential sector; we anticipate overall equity investments into India’s real estate sector to be in the USD 10 – 11 billion range in 2024.

 

- In addition to the core sectors, alternates such as data centres, flexible workspaces, and life sciences continued to gain traction, offering exciting opportunities for growth and diversification.

 

To dig deeper into our analysis of the trends shaping India’s real estate market in 2024, please click the download button.