Despite rising land costs, developers and institutional buyers pursued large-scale acquisitions across the country. The National Capital Region (NCR) topped the charts for the number of land deals closed, registering 38 transactions for over 417 acres, while Bengaluru followed MMR with 26 deals for 307 acres.

Land Transactions at a Glance

India witnessed 133 land deals covering 2,515 acres in 2024, a slight dip in area from 2023, which saw 97 deals for 2,707 acres. Over the two years combined, 230 deals were closed for a total of 5,222 acres.

Residential development dominated the market in 2024, with 95 deals for approximately 1,948 acres earmarked for township projects, plotted developments, luxury villas, and one 5-star hotel. Additionally, 124 acres were designated for mixed-use projects, 175 acres for commercial spaces and data centers, and 97 acres for industrial and logistics parks.

Breakdown of Land Use in 2024

• Residential Development: 95 deals (1,948 acres)
• Industrial & Logistics Parks: 4 deals (97 acres)
• Mixed-Use Development: 5 deals (124 acres)
• Commercial/Data Centers: 12 deals (175 acres)
• Retail, Senior Living, Education & Healthcare: 78 acres in 12 deals

City-Specific Highlights

• MMR: With 30 deals for 607 acres, MMR recorded the highest transacted land area in 2024. The planned developments include residential, mixed-use, commercial, industrial, and data centers.
• NCR: The region recorded 38 deals for 417 acres. Gurugram alone saw 24 deals for 273 acres, followed by Greater Noida (9 deals, 54 acres), and Ghaziabad (1 deal, 62.5 acres).
• Bengaluru: Accounted for 307 acres across 26 deals, including 22 residential developments, 2 commercial/data center projects, and 1 senior living project.
• Hyderabad, Pune, Chennai: Together, these cities transacted over 200 acres, with developments ranging from residential to data centers and logistics parks.
• Tier 2 & 3 Cities: Notable transactions included a single deal for 300 acres in Surat and 75 acres in Varanasi. Cities like Jaipur, Ahmedabad, and Dholera also recorded significant activity.

Top Transactions of 2024

• DLF Homes Developers acquired 29 acres in Gurgaon for ₹825 crore, aimed at residential development.
• Adani Realty purchased 24 acres in Mumbai for a commercial project valued at ₹8,000 crore.
• Godrej Properties secured 62 acres in Bengaluru for a township project on a profit-sharing model.
• Microsoft acquired 48 acres in Hyderabad for a data center for ₹267 crore.
• Arvind Smartspace executed a 300-acre plotted development in Surat through a joint development agreement.

Expert Insights

“MMR and NCR continue to dominate India’s real estate market in both land area transacted and deal volumes. Developers are strategically targeting high-value assets to address demand for residential, commercial, and mixed-use developments,” said Anuj Puri, Chairman, ANAROCK Group.

Despite economic challenges, the real estate sector remains resilient, with strong demand across residential, logistics, and commercial sectors. The year 2024 demonstrated that even escalating land prices are not deterring financially robust developers from acquiring prime assets in key markets.

Also Read: adani real estate

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Domestic investors followed a similar trend, with their share dropping to 30% in 2024 from 35% in the previous year. However, they too recorded a 36% growth in investment value.

A notable highlight was the rise of co-investments—joint funding by foreign and domestic investors—which surged to 16% of total investments in 2024, compared to a negligible share in 2023. Co-investments registered a remarkable 61-fold increase in value, as foreign investors leveraged the local expertise of domestic partners amid macroeconomic uncertainty.

Institutional investments in real estate reached USD 6.8 billion in 2024, marking a 61% year-on-year increase and surpassing pre-pandemic levels. This resurgence comes after a four-year decline, driven largely by the industrial and warehousing sector, which benefited from robust e-commerce and quick-commerce demand.

Shifts in Asset Investment

The commercial real estate segment, which has traditionally dominated investments, accounted for 35% of total investments in 2024, down from 61% in 2023. The decline reflects a slowdown in the IT-ITeS sector, although growing demand for Global Capability Centers (GCCs) is expected to renew interest in office spaces.

Meanwhile, the residential sector attracted USD 2 billion in investments, representing 30% of the total and a 171% increase from 2023. Similarly, the industrial and warehousing sector grew by 203%, increasing its share from 15% in 2023 to 28% in 2024.

Yearly Investment Trends

Institutional investments rebounded in 2024 after consecutive declines since 2020. The yearly investment trend highlights the following:

Expert Outlook

Shrinivas Rao, FRICS, CEO of Vestian, noted, “Despite a slow start, institutional investments in 2024 exceeded pre-pandemic levels. However, 2025 could pose challenges due to geopolitical tensions, global economic slowdown, and elevated inflation. A potential repo rate cut by the RBI could stimulate real estate activity, attracting more investors.”

Return-to-office policies, government initiatives like the Production Linked Incentive (PLI) scheme, and a focus on affordable housing are expected to boost real estate demand and investor participation in the coming years.

Key Insights:

• Foreign Investors: 54% share, USD 3.7 billion investments.
• Co-Investments: 16% share, 61-fold increase in value.
• Sector Growth: Residential investments up by 171%; industrial and warehousing up by 203%.
• 2024 Total Investments: USD 6.8 billion, up 61% year-on-year.

Also Read: cross-border investment

The post Foreign Investors Dominate Institutional Investments in 2024, Co-Investments See a 61-Fold Surge appeared first on Square Feat India.

The industrial & warehousing segment emerged as the top-performing asset class, accounting for USD 2.5 billion in investments, a 190% surge from the previous year. The sector contributed 39% of the total realty inflows, surpassing the office segment’s USD 2.3 billion (36% share). Foreign investments dominated, contributing over 80% to the industrial inflows, highlighting India’s growing prominence as a global manufacturing hub.

The office segment also witnessed significant activity in the second half of the year, with investments rebounding to USD 2.3 billion. Meanwhile, residential investments grew by 46% YoY, reaching USD 1.1 billion, driven by sustained interest from domestic players.

Key Highlights of 2024 Realty Investments:

• Total Investments: USD 6.5 billion, the highest since 2020, up 22% YoY.
• Industrial & Warehousing: USD 2.5 billion, marking a 190% increase.
• Office Assets: USD 2.3 billion, driven by foreign investments (77%).
• Residential Sector: USD 1.1 billion, up 46% YoY.
• Domestic Investments: Accounted for 33% of inflows, increasing by 27% YoY.

Mumbai attracted the highest share of investments at 24%, with USD 1.6 billion inflows primarily focused on office and industrial assets. Multi-city deals accounted for 39% of total investments, while Bengaluru, Chennai, and Delhi NCR maintained steady inflow shares of 8-9% each.

Key Drivers:

1. Industrial Growth: India’s manufacturing boom and enhanced logistics efficiency fueled industrial & warehousing investments.
2. Domestic Momentum: Domestic investments surged, reflecting growing confidence among Indian institutional investors.
3. Foreign Capital: Foreign investments comprised 66% of the total inflows, with APAC investors contributing significantly.

Expert Insights:
“Indian real estate continues to attract robust investments, underscoring the sector’s resilience and growth potential. Industrial and warehousing assets have taken center stage, reflecting strong demand and India’s emergence as a manufacturing hub,” said Badal Yagnik, CEO, Colliers India.

Looking ahead, the real estate market is expected to sustain its momentum in 2025, with Tier-I cities remaining the primary focus. Rising demand for Grade A developments and evolving infrastructure initiatives are likely to drive further growth across asset classes.

City-Wise Investment Trends (2024):

• Mumbai: USD 1.6 billion (24% share).
• Multi-City Deals: 39% share of total investments.
• Bengaluru & Chennai: 9% and 8% shares, respectively.

Indian real estate continues to shine as a lucrative investment destination, with 2024 marking a pivotal year in its growth trajectory.

Also Read: Industrial & Logistics Real Estate

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India’s office market has achieved a groundbreaking milestone in 2024, registering a record 49.56 million square feet (sq. ft.) in net absorption, marking a historic high. The year culminated with an extraordinary fourth quarter (October-December 2024), which saw net absorption hit 18.53 million sq. ft., the highest ever recorded in a single quarter.

The performance of India’s top seven cities—Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune—was exceptional, with Bengaluru maintaining its market-leading position. The city saw its best-ever net absorption of 14.74 million sq. ft. in 2024, reflecting a remarkable 63.6% year-on-year growth. Other key cities also posted impressive growth, with Delhi NCR and Hyderabad recording net absorption increases of 30.3% and 6.1%, respectively.

In total, the four leading cities—Bengaluru, Delhi NCR, Hyderabad, and Mumbai—accounted for 77.8% of the national net absorption in 2024. The surge in leasing activity underscores a strong demand for office spaces, particularly driven by global companies expanding their presence in India.

Record Leasing Volumes and Robust Occupier Demand

The Indian office market also saw record-breaking leasing activity in 2024, with gross leasing volumes reaching 77.22 million sq. ft., a 22.6% year-on-year increase. Global companies played a significant role in driving this growth, accounting for 58.6% of the leasing activity. Global Capability Centres (GCCs) emerged as a major contributor, securing around 28 million sq. ft., representing 35.9% of the leasing volumes.

The fourth quarter of 2024 saw the highest ever gross leasing volume in a single quarter, with 23.80 million sq. ft. leased. Bengaluru led this performance, with 7.87 million sq. ft. leased in Q4, followed by Delhi NCR, Hyderabad, and Mumbai. This surge in leasing was further driven by the rising demand for flexible workspaces, which saw leasing activity in this segment jump by 50% year-on-year.

Bengaluru’s Dominance in the Market

Bengaluru’s dominance in India’s office market was evident in both quarterly and annual figures. In Q4, the city accounted for 36.1% of the total net absorption, with a record-breaking 6.69 million sq. ft. absorbed. Its total net absorption for 2024 was 14.74 million sq. ft., a 63.6% increase from the previous year. Other cities, such as Delhi NCR, Hyderabad, and Mumbai, also saw robust growth, but Bengaluru continued to lead in both net absorption and gross leasing.

Vacancy Rates Decline

The vacancy rate across the top seven cities dropped to a three-year low of 16.3%, down by 60 basis points quarter-on-quarter. This decline is a result of the historic net absorption figures, supported by a balanced supply of office space. Vacancy rates fell across most cities, with the exception of Pune.

Looking Ahead: Continued Growth on the Horizon

India’s office market is poised for continued growth in the coming years. The expansion of GCCs, driven by a focus on AI, emerging technologies, and R&D, will continue to fuel demand for office space in core markets. The growth of flexible workspaces and increasing demand from sectors like financial services, manufacturing, and tech outsourcing will further bolster the market. India’s position as a key hub for global companies, particularly in the areas of talent availability and innovation, positions it for sustained office market success.

With strong performance across major cities and the continued influx of global occupiers, India’s office market is expected to maintain its upward trajectory in 2025 and beyond.

Also Read: 87% of Indian occupiers want half of office portfolios powered by renewables by 2030

The post India’s Office Market Reaches Record Heights in 2024, Surpassing 49 Million Sq. Ft. in Net Absorption appeared first on Square Feat India.

Residential Transactions and Sales Value Trends

In 2024, the number of registered residential transactions reached 5.77 lakh, compared to 5.56 lakh in 2023, reflecting a 4% increase. The registered sales value also rose to Rs. 4.03 lakh crore, up 2% from Rs. 3.95 lakh crore in 2023. Despite a slight dip in the average sales value per unit (Rs. 0.70 crore in 2024 from Rs. 0.71 crore in 2023), the overall performance demonstrates the ongoing strength of the residential real estate sector.

Tanuj Shori, Founder and CEO of Square Yards, commented, “The Indian residential real estate market has entered a promising phase post-pandemic, fueled by pent-up demand and a renewed desire for homeownership. While the sector experienced exceptional growth in the past few years, the numbers in 2024 indicate a natural market cycle. Annual sales have consistently surpassed 5 lakh units and Rs. 4 lakh crore in total value—far exceeding pre-2020 levels. This is not a slowdown but rather a sign of a maturing market, poised for sustained growth in the coming years.”

Regional Performance

The western region emerged as the dominant player, with cities like Mumbai, Thane, Navi Mumbai, and Pune accounting for 61% of the total registered transactions and 69% of the overall sales value. In the southern region, Bengaluru and Hyderabad together contributed 25% of the total transactions. Bengaluru recorded nearly 0.8 lakh registrations, although a slight dip occurred due to the E-khata rollout. Hyderabad, however, continued its upward trajectory, recording 80% of Bengaluru’s volume, strengthening its position as a key real estate hub.

Price Trends Across Major Cities

The sustained demand in 2024 has led to significant property price hikes across major cities. Gurugram stood out with an extraordinary 132% rise in property prices since 2019, driven by high demand for luxury and ultra-luxury homes. Other northern cities like Noida and Greater Noida also saw substantial price increases, with the upcoming Jewar Airport further boosting interest in these areas. Over the past five years, property prices across key cities have witnessed remarkable growth, with prices rising by an average of 60%.

Price Growth Over the Last 5 Years (2019 vs. 2024):

• Gurugram: Rs. 5,820 to Rs. 13,500 (132%)
• Noida & Greater Noida: Rs. 4,500 to Rs. 7,500 (67%)
• Bengaluru: Rs. 5,450 to Rs. 9,050 (66%)
• Pune: Rs. 5,200 to Rs. 8,300 (60%)
• Ahmedabad: Rs. 3,580 to Rs. 5,500 (54%)
• Hyderabad: Rs. 5,250 to Rs. 7,500 (43%)
• Mumbai MMR: Rs. 9,500 to Rs. 14,200 (49%)
• Chennai: Rs. 5,200 to Rs. 6,940 (33%)
• Kolkata: Rs. 4,510 to Rs. 5,890 (31%)

Supply and Developer Confidence in 2024

Developers exhibited strong confidence in 2024, launching over 3.9 lakh new units and delivering more than 4 lakh units across major cities. The demand for gated communities and lifestyle amenities led developers to align their offerings with evolving consumer preferences. Developers also embraced cutting-edge technology and innovative designs. The NIFTY Realty Index, which tracks the performance of leading real estate stocks, outperformed other sectoral indices on the NSE in 2024, registering an impressive 40% gain year-to-date.

Outlook for 2025

Looking ahead to 2025, the outlook remains optimistic, with over 3.6 lakh units expected to be delivered across major cities. Leading developers have an ambitious pipeline of nearly 300 million sq. ft. for FY2025. This robust pipeline is anticipated to further boost transaction volumes and cater to the diverse needs of buyers. Despite a moderation in growth rates, the Indian real estate sector continues to perform well above pre-pandemic levels. The positive economic environment and shifting lifestyle preferences are expected to sustain momentum, ensuring another promising year for developers, homebuyers, and investors.

Also Read: AI in real estate

The post Residential Property Transactions Soar Past 5.5 Lakh in 2024, Grossing Over Rs. 4 Lakh Crore; Property Prices Surge 60% in Five Years appeared first on Square Feat India.