Gross retail leasing across the top seven cities reached 6.27 million sq. ft. in H1 2026, rising 10.5% from 5.68 million sq. ft. in H1 2025. The performance marked the highest half-yearly retail leasing volume in four years.

Mumbai recorded a 69.6% year-on-year increase in leasing during the period, making it one of the strongest-performing major retail markets in the country.

Delhi NCR accounted for 24% of total leasing, while Bengaluru contributed 23%. Together, Mumbai, Delhi NCR and Bengaluru accounted for more than 75% of India’s total retail leasing in H1 2026, highlighting the continued concentration of retailer demand in established consumption markets.

Mumbai, Delhi NCR drive retail expansion

Mumbai and Delhi NCR together accounted for 53% of total retail leasing during H1 2026.

While Mumbai’s 29% share was the highest among the top seven markets, Delhi NCR registered a 75.9% year-on-year increase in leasing. Bengaluru remained the third-largest market with a 23% share.

Kolkata emerged as the fastest-growing market, with leasing volumes increasing 87.3% year-on-year following the completion of a new shopping mall in Q1 2026.

However, leasing activity moderated in Bengaluru, Hyderabad and Chennai during the period.

Retail demand rises despite shortage of quality space

The growth in leasing came despite limited new mall supply. Only 0.82 million sq. ft. of new shopping mall space was added across the top seven cities in H1 2026, representing a 64% decline from H1 2025.

India’s total shopping mall stock stood at approximately 92.08 million sq. ft. at the end of June 2026.

The limited supply has increasingly become a challenge for retailers looking to expand. JLL said leading retail brands have been struggling to secure quality mall space over the past six to nine months, prompting some retailers to consider alternative formats for store expansion.

Despite the supply constraints, shopping mall vacancy across the top seven cities declined by 45 basis points year-on-year, from 11.60% in H1 2025 to 11.15% in H1 2026.

The share of malls in overall gross retail leasing also increased from 38.9% in H1 2025 to 43.1% in H1 2026. Leasing in shopping malls grew 22.4% year-on-year, indicating a growing preference among retailers for premium and organised retail environments.

Domestic retailers dominate leasing

Domestic retailers remained the biggest source of demand, accounting for 79.1% of total gross leasing in H1 2026.

Fashion and apparel remained the largest leasing category with a 33% share, followed by food and beverage at 18%.

Entertainment accounted for another 16% of leasing, rising from 12% a year earlier. JLL attributed the growth to family entertainment centres, including bowling alleys, gaming zones and children’s play areas.

The increase reflects a broader shift towards experience-led retail, with consumers increasingly looking for entertainment and experiential offerings alongside traditional shopping.

In contrast, leasing by daily-needs and grocery retailers fell 39%, which JLL attributed largely to the rapid expansion of quick-commerce and dark-store networks.

International brands continue to expand

Although the pace of new international brand entries moderated, established global retailers continued to expand their presence in India.

Gross leasing by international brands already operating in the country increased 62.1% year-on-year during H1 2026.

New international brands entering India during the period were primarily concentrated in food and beverage, fashion and apparel, footwear, and bags and accessories.

JLL said the continued expansion by both domestic and international retailers reflects sustained confidence in India’s consumption and retail market despite global economic uncertainties.

45.5 million sq. ft. mall pipeline by 2030

While the near-term market remains supply constrained, the medium-term development pipeline is significantly larger.

Approximately 45.5 million sq. ft. of shopping mall space is currently under various stages of construction across India’s top seven cities and is expected to become operational by 2030.

JLL said this pipeline could support the next phase of organised retail growth as developers focus increasingly on high-quality assets that integrate technology, convenience and experience-led formats.

Saket Amrit, Head-Retail Services, India, JLL, said India’s retail real estate sector is in a resilient growth phase, with demand reaching record levels despite global headwinds and rising retail inflation during the first half of 2026.

According to JLL, India’s retail market is entering a new phase in which quality of retail space, consumer experience and institutional-grade assets are becoming increasingly important.

For Mumbai, the combination of strong retailer demand and limited availability of premium retail space could continue to support leasing activity, while the city’s established consumption base keeps it among the country’s most sought-after retail markets.

Also Read: India Real Estate to Attract ₹50 Lakh Cr by 2036, But Affordable Housing Faces Funding Crisis

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The Reserve Bank of India’s Monetary Policy Committee has kept the repo rate unchanged at 5.25 per cent for the fourth consecutive meeting, maintaining its neutral policy stance. The decision, announced by RBI Governor Sanjay Malhotra after the three-day policy meeting held between August 3 and August 5, comes as the central bank continues to balance domestic growth momentum against global uncertainty stemming from the ongoing West Asia conflict. Consequently, the Standing Deposit Facility rate remains at 5 per cent, while the Marginal Standing Facility rate and the Bank Rate continue at 5.5 per cent.

For homebuyers, the status quo means EMIs on existing and new home loans stay exactly where they are, at least until the next policy review scheduled for October. That predictability is quietly becoming as important to the housing market as the headline rate itself.

What the Governor Said

Explaining the rationale behind the pause, Malhotra said the MPC arrived at its decision after assessing evolving domestic macroeconomic and financial conditions alongside the global outlook, noting that the continuing conflict in West Asia has disrupted trade routes and supply chains, increased market volatility and weakened business sentiment. He flagged that global growth is expected to slow while inflation stays elevated through the year, adding to the case for caution rather than any immediate rate action.

On prices, the Governor struck a watchful but not alarmist tone. He said headline inflation is expected to rise further in the near term and likely peak in the third quarter, largely on account of food and fuel, before moderating thereafter, while underlying or core inflation has stayed contained and should converge with the headline number by the end of the financial year. Importantly, he attributed the anticipated inflation uptick to supply-side factors rather than any broad-based demand pressure, a distinction that matters, since it suggests the central bank doesn’t see the kind of runaway pricing pressure that would force its hand on rates.

On growth, Malhotra pointed to resilient domestic demand, steady expansion in manufacturing and services, and healthy exports as the pillars supporting the economy, projecting real GDP growth for FY27 at 6.7 per cent, with the strongest quarter expected to be the first at 7 per cent before moderating and picking up again by Q4. He was candid, however, that the outlook remains hazy given global trade policy uncertainties, and that greater clarity is needed on inflation’s path before any policy shift. The headline takeaway for the property market remains the fourth straight hold.

Industry Reads It as a Green Light for Festive Season Buying

Real estate voices were broadly welcoming, several framing the timing as significant given the run-up to the festive season, traditionally the busiest home-buying window of the year.

Amit Goyal, Managing Director of India Sotheby’s International Realty, called this the fourth consecutive policy with rates unchanged and said the decision reflects confidence in the resilience of the Indian economy even as crude prices stay elevated and June retail inflation touched an 18-month high. He noted this is the last policy review before the festive season, giving both buyers and developers greater certainty to plan purchases and launches, and expects the combination of steady rates and easing crude to support sentiment through the coming quarters.

Dharmendra Raichura, VP and Head of Finance at Ashar Group, echoed that view, saying the RBI’s decision to hold the rate at 5.25 per cent reinforces confidence in an already resilient residential market by providing certainty around borrowing costs. With a broad consensus among economists that the rate could stay at 5.25 per cent through the rest of 2026, he expects homebuyer sentiment, financing decisions and residential demand to stay healthy over the next six to twelve months, with predictable EMIs improving purchase planning while developers gain clearer visibility on project execution and capital allocation. He added that faster transmission of policy rates into home loan pricing by banks, along with adequate systemic liquidity, would further strengthen affordability and end-user demand.

Affordability Concerns Persist Despite Stability

Not every voice was unreservedly upbeat. Anuj Puri, Chairman of ANAROCK Group, cautioned that a steady policy rate is welcome for stability but insufficient on its own to revive the mass-market housing cycle. He pointed to ANAROCK’s Q2 2026 data showing total sales across the top seven cities fell 6 per cent year-on-year to about 90,715 units, even as affordable housing supply shrank to just 6 per cent of total launches despite overall new supply rising 7 per cent to roughly 1.06 lakh units. With average residential prices still climbing around 7 per cent annually across major cities, Puri argued that rate steadiness alone cannot meaningfully move the needle on affordability, and that the market’s apparent balance is being driven by the luxury segment rather than the broader, more rate-sensitive affordable housing category.

A Vigilant Central Bank Amid Global Headwinds

Lata Pillai, Senior Managing Director and Head of Capital Markets, India, at JLL, framed the hold as a sign of caution rather than complacency. She noted the RBI has retained its neutral stance for a fourth straight time even as inflation risk stays elevated amid the evolving global situation and concerns around the monsoon. While Q1 GDP and broader macro indicators position India favourably, she said continuing high energy costs and a watchful eye on rainfall, against a backdrop of strong domestic demand, are keeping the central bank vigilant. Pillai flagged that FY27 GDP is now projected higher than at the last MPC meeting, at 6.7 per cent, while the inflation outlook has been revised down by 10 basis points to 5 per cent, even as volatile oil prices and food inflation could weigh on the next couple of quarters. She added that a strengthening rupee has offered some relief, with liquidity remaining healthy.

Vimal Nadar, National Director and Head of Research at Colliers India, said the hold reflects a vigilant approach given the resurgence of tensions in West Asia, volatile crude, a fluctuating rupee and persistent inflationary risks, though he believes Indian real estate is well positioned to navigate these downside risks. He said rate stability continues to offer comfort particularly to buyers in the affordable and middle-income segments, and with the festive season approaching, steady EMIs could support housing demand over the coming quarters, even as rising construction and labour costs pose affordability pressures that may moderate sales compared to last year. He also pointed to RERA’s recent advisory granting a four-month extension to eligible projects affected by the West Asia conflict as a timely regulatory relief for developers.

Shrinivas Rao, CEO of Vestian, described the decision as a balanced response to geopolitical uncertainty, an uneven monsoon and rising domestic inflation, one that should support capital inflows into real estate at a time when developers are grappling with elevated construction costs and softer foreign investment sentiment. He cautioned, however, that current mortgage rates may represent only a limited window for prospective buyers, and that a 25-basis-point hike could be on the table at the next MPC meeting if crude prices and inflationary pressures intensify.

Certainty Over Cuts: What Developers and Buyers Are Saying

Akhil Saraf, Founder and CEO of proptech firm Reloy, said the unchanged rate brings much-needed stability, arguing that in today’s market predictability matters just as much as lower rates. For buyers, it means more confidence in financial planning; for developers, it offers the certainty needed to plan investments and execute projects efficiently. While he acknowledged a rate cut would have given housing demand an extra push, he said holding the rate strikes the right balance between supporting growth and containing inflation.

Ashish Sharma, AVP Operations at Brahma Group, offered a similar assessment, saying the decision reflects a balanced approach to supporting growth while ensuring macroeconomic stability amid global uncertainty. He said stable rates enhance affordability and encourage buyers to move forward with purchase decisions, while giving developers the confidence to launch and execute projects, sustaining positive sentiment and growth momentum across the sector in the months ahead.

The Bottom Line for Homebuyers

With the next MPC review not due until October, homebuyers effectively have a two-month window of rate certainty heading straight into the festive season. EMIs stay predictable, developers get room to plan launches, and the broader consensus among economists suggests 5.25 per cent could hold well into the rest of 2026. The caveat, as Puri’s data makes clear, is that stability in rates does not automatically translate into affordability, especially for the mass and affordable housing segments still contending with rising prices and shrinking supply. For now, the message from both the RBI and the real estate industry is one of steady hands rather than dramatic moves.

Also Read: RBI Repo Rate Hike: Real Estate Sector Voices for Stability

The post Homebuyers, Your EMI Won’t Rise: RBI Holds Repo Rate at 5.25% appeared first on Square Feat India.

The report shows that home sales across the country’s top seven cities reached 138,382 units during January-June 2026, making it the second-highest first-half sales performance after H1 2024. While sales in the second quarter (April-June) moderated by 4% compared to the first quarter, JLL said the slowdown reflects a short-term market recalibration rather than weakening demand.

According to the report, 67,751 apartments were sold during Q2 2026 compared with 70,631 units in Q1 2026. However, the overall H1 performance remained positive, supported by sustained urbanisation, infrastructure development, improving connectivity and evolving homebuyer preferences.

Bengaluru emerged as the strongest-performing residential market during the first half of the year, recording 35,017 apartment sales, a 16% year-on-year increase. Chennai posted the highest growth rate among the seven cities, with sales surging 27% to 8,587 units.

Delhi-NCR also recorded healthy growth of 7%, with 20,761 apartments sold during H1 2026.

In contrast, Hyderabad witnessed a marginal 3% decline in sales, while Kolkata recorded a 1% dip. Mumbai remained largely stable with 28,518 apartment sales, down just 1% year-on-year, whereas Pune experienced the sharpest correction among the major markets, with sales declining 14% to 22,782 units.

Despite varying performances across cities, Bengaluru, Mumbai and Pune continued to dominate India’s housing market, together accounting for nearly 62% of total residential sales during the first half of 2026. When Delhi-NCR is included, the four largest residential markets contributed around 76% of total apartment sales.

JLL attributed the temporary moderation in second-quarter sales to seasonal factors, property price recalibration and buyers taking more time to evaluate purchase decisions amid rising housing prices.

The report notes that India’s homebuyers are increasingly prioritising quality construction, better amenities, superior locations and reputed developers over lower prices. This trend is becoming particularly evident in the premium housing segment.

The ₹1.5 crore to ₹3 crore price bracket recorded the strongest growth, with sales increasing 58% year-on-year to 51,231 units. This segment alone accounted for 37% of all apartment sales during H1 2026, up significantly from 24% a year earlier.

Overall, homes priced above ₹1 crore represented 71% of all residential sales during the period, compared with 62% in H1 2025, indicating a clear shift towards premium housing.

On the other hand, affordable and lower mid-income housing continued to lose market share. Homes priced below ₹50 lakh registered a 32% decline in sales, while the ₹50 lakh to ₹1 crore category fell by 20% year-on-year.

The report also highlighted strong developer confidence, with new residential launches increasing 9% year-on-year during H1 2026.

Developers launched 168,507 new apartments across the top seven cities during the first six months of the year.

Bengaluru led new supply with 48,748 apartment launches, representing a remarkable 41% increase over H1 2025. Mumbai followed with 33,498 new launches, registering 18% growth, while Delhi-NCR recorded a 14% increase with 24,884 units launched.

Chennai, Hyderabad, Kolkata and Pune witnessed comparatively lower launch activity during the period.

Commenting on the market, Siva Krishnan, Senior Managing Director (Chennai & Coimbatore) and Head – Residential Services, India at JLL, said the H1 performance reflects the maturity of India’s residential sector.

He noted that sustained urbanisation, infrastructure development and rising aspirations continue to support housing demand, while buyers are increasingly willing to invest in premium projects that offer better quality and long-term value.

According to Krishnan, the 9% increase in new launches demonstrates strong developer confidence, while the growing preference for homes priced between ₹1 crore and ₹3 crore highlights changing buyer aspirations.

The report also noted that residential property prices continued to rise across all seven major cities during H1 2026.

Annual price appreciation ranged between 6% and 15%, with Bengaluru recording the highest increase at 15%, followed by Chennai and Kolkata at 13% each.

JLL attributed the continued increase in housing prices to rising construction costs, strong buyer demand and developers increasingly launching premium residential projects.

Looking ahead, the consultancy expects India’s residential market to remain on a growth trajectory during the remainder of 2026.

JLL believes that improving infrastructure, expanding metro rail networks, new growth corridors, rising household incomes, better access to housing finance and stable interest rates will continue to support homebuyer demand across major cities.

While acknowledging the temporary moderation witnessed during the second quarter, the report concludes that India’s housing market fundamentals remain strong and the sector is well-positioned for sustained long-term growth.

Also Read: Luxury Housing Sales Double to 14%

The post India Home Sales Rise 3% in H1 2026 as Housing Market Remains Resilient appeared first on Square Feat India.

For homebuyers, the biggest immediate impact is stability in home loan Equated Monthly Instalments (EMIs). Since most floating-rate home loans are linked to external benchmarks like the repo rate, today’s hold means no upward revision in borrowing costs. Existing borrowers avoid any EMI shock, while new buyers gain predictability to plan purchases without fear of sudden rate hikes.

Industry experts and real estate leaders have welcomed the move for providing much-needed certainty in an environment of rising economic optimism post-Union Budget 2026-27, improved trade agreements, and infrastructure momentum.

Prashant Sharma, President, NAREDCO Maharashtra, noted: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector… policy continuity will help sustain housing demand and enable developers to plan investments with greater confidence.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, added: “Stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity… reinforcing real estate’s appeal as a stable, long-term asset class.”

Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group, highlighted: “This policy stability brings much-needed clarity on financing costs… we anticipate sustained momentum across residential segments, particularly in infrastructure-driven growth corridors.”

Shilpin Tater, Managing Director, Superb Realty, said: “The RBI’s neutral stance… will support occupier and investor sentiment, particularly for long-gestation commercial projects that rely on long-term cost visibility.”

Shraddha Kedia-Agarwal, Director, Transcon Developers, emphasized: “Stable borrowing costs… create a supportive environment for housing demand, especially in metropolitan markets… This policy continuity will help sustain residential demand and support long-term housing affordability.”

Dhruman Shah, Promoter, Ariha Group, observed: “The continued pause on interest rates provides much-needed predictability… positioning the sector for stable, long-term growth.”

Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd., stated: “Unchanged interest rates combined with a stronger growth outlook enhance investor confidence across asset classes.”

Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, provided deeper insight: “The unchanged rate… preserves stability in borrowing costs, supporting consumer spending, housing demand, and business investment… The residential market… experienced a sales slowdown in 2025… the combination of accelerated GDP growth, moderating housing price appreciation, and the prospect of additional rate cuts is expected to revive housing sales volumes in 2026.”

Anuj Puri, Chairman – ANAROCK Group, pointed out a balanced view: “RBI’s decision… means that home loan EMIs will not change… This will keep buyers engaged but does nothing to lift demand further… A rate cut would have potentially brought at least some fence-sitters back to the market.” He noted subdued affordable housing trends and called for targeted fiscal measures.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, said: “An unchanged rate has ensured that EMIs on floating-rate loans remain steady, offering predictability… This clarity on borrowing costs has supported affordability and enabled homebuyers… to plan long-term purchases with greater confidence.”

Dharmendra Raichura, VP and Head of Finance, Ashar Group, concluded: “An unchanged rate environment brings stability to funding costs… From a homebuyer’s perspective, predictable lending rates preserve EMI visibility and reinforce purchase confidence.”

While the hold shields EMIs from rises and supports overall sector momentum amid a robust 7.4% GDP growth outlook for FY26, experts note that affordability challenges persist in segments like affordable housing. Many anticipate potential future cuts if inflation remains controlled, which could further ease EMIs.

This policy continuity underscores the RBI’s calibrated approach—balancing growth support with inflation vigilance—offering homebuyers a window of EMI stability to make informed decisions in a strengthening economy.

Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?

The post How RBI’s Unchanged Repo Rate at 5.25% Keeps Home Loan EMIs Steady: A Boost for Homebuyers’ Financial Planning appeared first on Square Feat India.

This trend highlights how premium housing demand remains strong, driven by affluent homebuyers prioritizing lifestyle, location, and long-term asset value — even amid rising property prices and cautious sentiment in the broader market.

Premium Homes Power the Market

• Apartments priced at ₹1 crore and above contributed 62% of total home sales between January and September 2025 — up sharply from 52% in the same period last year.
• The biggest surge came from the ₹1.5 crore–₹3 crore bracket, which saw a 10% rise in sales, showing strong appetite for mid-premium and luxury homes.
• In contrast, homes priced below ₹1 crore saw a 30% Y-o-Y decline, indicating waning traction in the mass housing segment.

Key takeaway: The Indian housing market is clearly moving toward value-driven and quality-led demand, as end-users and investors alike prioritize long-term appreciation and better living standards over entry-level affordability.

Top Cities Continue to Lead, Despite a Slowdown

Bengaluru, Mumbai, and Pune remained the top-performing cities, together accounting for more than 60% of total sales across India’s seven major metros.

• Pune and Chennai were standout performers with 14% and 13% annual sales growth, respectively.
• Delhi NCR and Mumbai saw sharper corrections due to higher pricing and supply adjustments.
• Despite a 9% decline in Q3 2025 sales, the premium category held steady, particularly in the ₹1.5–3 crore segment, which grew 14% Y-o-Y during the quarter.

According to Dr. Samantak Das, Chief Economist and Head of Research, JLL India:

“The January–September 2025 period has seen the market recalibrate toward value. Even with lower volumes, demand for premium housing remains steady, and nearly a quarter of total sales came from projects launched within the same year — indicating continued buyer confidence in new supply.”

Developers Shift Focus to High-Value Projects

Developers are realigning their portfolios toward premium housing, reflecting both demand resilience and higher margins.

• New home launches across top cities stood at 2.25 lakh units in the first nine months of 2025, marginally down 1% Y-o-Y.
• However, launches in the ₹1 crore+ category grew by 5%, underscoring the pivot to high-value products.
• Chennai, Kolkata, Pune, and Bengaluru witnessed the strongest growth in new project launches.

As Siva Krishnan, Senior Managing Director (Chennai & Coimbatore), JLL India, noted:

“Developers have been cautious in mid-income and affordable launches, where demand has softened. The focus on premium projects has helped stabilize inventory levels and sustain healthy absorption rates.”

Prices Keep Rising — Even as Volumes Dip

While overall sales volumes dipped, home prices continued their upward trajectory across all major cities:

• Kolkata led with a 16% Y-o-Y increase, followed by Chennai (14%), and Delhi NCR and Bengaluru (13%).
• The combination of higher input costs, premium product launches, and sustained demand helped developers maintain pricing power.

In short, price resilience amid slower sales reflects a maturing market that is consolidating toward financially stronger developers and serious end-users.

What It Means for Homebuyers and Developers

For homebuyers:

• Premium projects are becoming the new normal in major metros.
• Rising prices suggest urgency — waiting may cost more in 2026.
• Projects by branded developers are increasingly seen as safe, value-stable investments.

For developers:

• The premium segment offers better margins and faster absorption.
• Slower mid-range sales could push smaller players to consolidate or collaborate with larger firms.
• Market maturity will encourage sustainable, experience-driven housing instead of speculative supply.

Outlook: A Premium-Led Future

The Indian housing market is transitioning from rapid expansion to measured, value-oriented growth. Rising construction costs, land prices, and consumer preferences are collectively pushing the market toward the upper end.

Luxury and premium housing will continue to drive overall market momentum through 2026, even as total volumes stabilize. For serious developers, this presents a window to build credibility, deliver quality, and capture the aspirational buyer base shaping India’s next real estate cycle.

Also Read: Mumbai Property Registrations Rise Despite Shraadh Period

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As India’s commercial office market rides a wave of record-breaking leasing, Mumbai Metropolitan Region (MMR) has carved out a dominant position as the country’s leading hub for BFSI Global Capability Centers (GCCs), according to a new report by JLL.

While Bengaluru retains the lion’s share (40%) of GCC leasing since 2022, Mumbai has clearly emerged as the financial services anchor, thanks to its legacy as India’s banking capital and its mature commercial infrastructure.

Mumbai’s GCC Snapshot

“Mumbai is the undisputed leader when it comes to BFSI-focused GCCs,”
said Rahul Arora, Senior MD, JLL India.
“The city’s historical banking and finance legacy, coupled with a maturing digital ecosystem, has made it the go-to location for global financial institutions looking to scale their India operations.”

Mumbai: Banking on BFSI GCCs

As per JLL’s findings:

• Mumbai leads in BFSI GCC leasing volume across India.
• Companies prefer the city for its access to financial regulators, proximity to HQs, and abundance of finance professionals.
• Demand is especially strong from multinational banks, insurance companies, asset management firms, and digital finance players setting up innovation centers.

Core Corridors Fueling Growth

Across these corridors, JLL reports that 65–98% of GCC activity is concentrated in high-grade office parks offering ESG-compliant, tech-enabled campuses with excellent infrastructure.

BFSI & Beyond: Mumbai’s Expanding Role

Although BFSI is the core driver, Mumbai is also witnessing:

• Gradual growth in consulting and legal services GCCs
• Fintech R&D centers targeting digital banking innovations
• Uptick in shared services hubs supporting global operations

This evolution highlights Mumbai’s growing role as a multi-sectoral innovation hub, not just a financial capital.

Market Comment

“The maturity of MMR’s office ecosystem, policy support for financial innovation, and talent availability give it a long-term edge,”
noted Dr. Samantak Das, Chief Economist & Head of Research, JLL India.
“As BFSI firms modernize their global operations, MMR will remain a core GCC destination, especially for high-value financial and compliance services.”

India-Wide GCC Momentum – MMR Stays Ahead

• India GCC leasing (2022–H1 2025): ~230 million sq. ft.
• GCC share in total leasing: 35.4%
• BFSI + ER&D (2024–H1 2025): 51.5% of all GCC leasing
• Mumbai BFSI GCCs: Among highest leasing share, surpassing Chennai and Hyderabad in this segment

Outlook for MMR

Also Read: MMR Saw 16,510 Launches in Q3 of 2021, 140% Increase from Q2

The post Mumbai Emerges as India’s BFSI GCC Powerhouse Amid Record Leasing Surge appeared first on Square Feat India.

Overall, Pune’s total industrial stock expanded from 24.2 million sq. ft. in 2019 to nearly 61 million sq. ft. in 2024. JLL projects this figure will more than double, crossing 140 million sq. ft. by 2030.

Quality Drives Demand

Notably, the market is witnessing not just rapid growth but a marked shift toward higher-quality infrastructure. Grade A facilities—premium spaces built to modern specifications—now account for 75% of Pune’s industrial stock, among the highest in India. Grade A net absorption alone nearly tripled over five years, rising from 3.2 million to 9.9 million sq. ft.

“Pune’s industrial real estate market is not just growing; it’s evolving,” said Sanjay Bajaj, Senior Managing Director – Pune and Logistics & Industrial, India, JLL. “The combination of Grade A facilities, rising foreign investment, and demand from high value-added sectors is transforming the city into a strategic manufacturing and logistics hub.”

Manufacturing Leads, Diversification Grows

While automotive and engineering industries remain dominant—accounting for about 65% of leasing activity in 2024—other sectors are gaining ground. Fast-moving consumer goods (FMCG), home and construction materials, and pharmaceuticals are contributing to a more diversified and resilient industrial ecosystem.

International manufacturers are increasingly flocking to Pune. German and South Korean companies have established a strong presence, while Japanese original equipment manufacturers (OEMs) have accelerated their investments in recent years.

Looking Ahead: Strong Momentum

The outlook for the remainder of the decade is bullish. JLL anticipates that annual supply and demand will consistently stay above 10 million sq. ft. Vacancy rates are expected to tighten further, dipping below 5% as occupiers compete for high-specification space.

As Pune consolidates its status as India’s premier industrial real estate market, its growth is reshaping the country’s broader manufacturing landscape. The city is emerging as the leading destination for global companies seeking high-quality infrastructure, robust talent, and strategic access to Western India.

Also Read: Pune Property Market Sees Mixed Trends in May 2025; Year-to-Date Performance Strong

The post Pune’s Industrial Real Estate Soars 2.5x, Poised to Double Again by 2030 appeared first on Square Feat India.

The fully operational industrial park, developed by a consortium of Mumbai-based developers and hosting several blue-chip tenants, was acquired through a mix of cash and InvIT unit issuance to existing shareholders. The deal strengthens NDR InvIT’s strategic foothold in Western India’s fast-growing logistics market, with its Assets Under Management (AUM) reaching approximately 19.01 million sq. ft. as of Q3FY2025.

Located in Kosamba, near Surat, the industrial park forms part of a longstanding warehousing cluster along the Kosamba-Palsana-Sachin belt, offering proximity and excellent connectivity to Surat, Vadodara, and Ahmedabad via the golden quadrilateral. This strategic location has prompted the development of modern warehousing facilities and an increase in rentals for Grade A spaces.

Lata Pillai, Senior Managing Director & Head of Capital Markets, India, at JLL, said the deal reflects the explosive growth in India’s warehousing sector, which now ranks third in attracting investments and accounts for nearly a quarter of the country’s total real estate inflow. “This InvIT warehouse buyout is a game-changer, exemplifying the synergy between local expertise and national capital,” she added.

Daljit Singh, Marketing Director at NDR InvIT Managers Pvt Ltd, commented that the acquisition marks a significant milestone in their expansion strategy. “Surat’s strategic location and its growing significance in India’s industrial landscape make this a valuable addition to our portfolio. This move reaffirms our commitment to creating long-term value for our unitholders while meeting the evolving needs of our tenants,” he said.

The transaction is expected to further strengthen NDR InvIT’s position as a leading provider of high-quality industrial and warehousing solutions in India’s key growth centres.

Also Read: Indoor Amusement Centers Transforming India’s Retail Landscape: JLL Report

The post JLL Facilitates NDR InvIT’s 0.9 Million Sq. Ft. Industrial Park Acquisition Near Surat, Boosting Gujarat’s Logistics Sector appeared first on Square Feat India.

According to JLL India, the nation’s combined warehouse absorption across 20 major markets hit an all-time high of 60 million sq. ft. in 2024. Notably, Grade A spaces constitute around 30% of the total inventory in these emerging Tier II-III cities.

Tier II-III Cities Leading the Charge

The expansion of the warehousing market in emerging cities is driven by several factors, including the surge in e-commerce, rising demand for fulfillment centers, and infrastructure development. As companies seek to reduce logistics costs and enhance delivery speed, they are increasingly establishing warehouses in these cities.

Key data from JLL India’s report highlights the warehousing stock distribution and growth in Tier I and Tier II-III cities:

Regional Growth Trends

The report categorizes growth trends in emerging warehousing cities across India:

East India

• Total Stock: 22.8 million sq. ft. (6x growth since 2017)
• Key Markets: Bhubaneswar-Cuttack (5.6 million sq. ft.), Guwahati (8.0 million sq. ft.), Patna (9.2 million sq. ft.)

North India

• Total Stock: 35.6 million sq. ft. (4x growth since 2017)
• Key Markets: Chandigarh-Rajpura (14.1 million sq. ft.), Jaipur (6.0 million sq. ft.), Lucknow (8.5 million sq. ft.), Ludhiana (7.0 million sq. ft.)

South India

• Total Stock: 15.2 million sq. ft. (3x growth since 2017)
• Key Markets: Coimbatore (6.6 million sq. ft.), Kochi (8.6 million sq. ft.)

West India

• Total Stock: 21.2 million sq. ft. (3x growth since 2017)
• Key Markets: Goa (6.7 million sq. ft.), Nagpur (13.0 million sq. ft.), Nashik (1.5 million sq. ft.)

Industry Experts Weigh In

Yogesh Shevade, Head – Logistics & Industrial, India, JLL, emphasized the rapid growth of the warehousing sector in emerging cities. “Since the implementation of GST, the Indian warehousing market has expanded significantly in major cities. Now, the hub-and-spoke model is playing a critical role in spreading this growth to Tier II-III cities. In 2024, these cities accounted for nearly 100 million sq. ft. of stock, marking a fourfold increase since 2017. We anticipate continued expansion, fueled by infrastructure initiatives connecting these cities to major consumption hubs. This transformation is creating new investment opportunities for both investors and developers.”

Government Initiatives Fueling Growth

The expansion of warehousing in emerging cities is strongly supported by government initiatives such as PM Gati Shakti, Bharatmala, Sagarmala, and the UDAN Scheme. These programs are optimizing distribution networks and improving connectivity. Additionally, policies like Make in India, Digital India, and the National Logistics Policy are fostering a robust manufacturing ecosystem. Production-Linked Incentives (PLI) and Design-Linked Incentives (DLI) schemes are also encouraging companies to set up manufacturing units in these cities, further driving the need for high-quality warehousing infrastructure.

JLL’s Report Launched at LogiMAT India 2025

The findings were unveiled in “The Shifting Landscape of Warehouse Markets Report,” presented by JLL at LogiMAT India 2025 in Mumbai. The event, held at the Bombay Exhibition Centre, saw participation from key industry leaders, including Dr. P. Anbalagan (IAS), Secretary of the Industries Department, Government of Maharashtra, and Aditya Gupta, CEO of Messe Stuttgart India.

Aditya Gupta remarked, “This report by JLL aims to bridge the gap in India’s logistics and warehousing sector by highlighting the growing prominence of Tier II-III cities as new warehousing hubs. I believe this report will inspire discussions and strategic collaborations that will drive the industry forward.”

Conclusion

The rise of Tier II-III cities as warehousing hubs is redefining India’s logistics landscape. As businesses optimize their supply chains and enhance delivery efficiencies, the sector is poised for sustained growth. With continued investments in infrastructure and policy support, these cities are set to play a crucial role in the future of warehousing in India.

Also Read: India’s tallest warehouse

The post Emerging Tier II-III Cities Drive India’s Warehousing Growth with 100 Million Sq. Ft. Contribution appeared first on Square Feat India.

Sustainable Development Takes Center Stage
Sustainability has become a central theme in India’s real estate sector in 2024. Green building certifications, such as LEED (Leadership in Energy and Environmental Design), are gaining traction as buyers and developers alike prioritize eco-friendly and energy-efficient buildings. Sustainable development is no longer a trend, but a key factor influencing property values, making green buildings more desirable and competitive in the market.

The Rise of Smart Homes and Tech-Integrated Living
Technology-driven homes are on the rise, with an increasing demand for smart homes. Advanced automation systems, including IoT devices that enhance security, energy management, and convenience, are becoming standard features in new residential properties. This shift toward tech-integrated living is responding to the growing consumer desire for enhanced comfort, efficiency, and security in their living spaces.

Affordable Housing Initiatives Gain Momentum
Affordable housing has continued to be a focal point in India’s real estate market. With government policies promoting homeownership for the middle class and first-time buyers, affordable housing options have seen a surge. Lower interest home loans and subsidies are making home ownership more accessible, allowing budget-conscious buyers to enter the market with greater ease.

Evolution of Luxury Real Estate in Metro Cities
The luxury real estate market has undergone significant changes, especially in response to the COVID-19 pandemic. There is now a greater emphasis on spacious layouts, private outdoor areas, and wellness amenities that cater to health and well-being. These changes reflect a shift in buyer preferences, with a focus on comfort and a healthier lifestyle.

Rise of Mixed-Use Developments
Mixed-use developments have gained popularity as urban planning evolves. These developments, which combine residential, commercial, and recreational spaces, are becoming more common in major cities. Offering residents the convenience of having everything they need within walking distance, mixed-use projects reflect the global trend toward creating live-work-play environments.

2024 Market Insights
2024 has been a landmark year for India’s residential market. Sales have surged by 17% compared to the previous year, translating to approximately 85% of the total units sold in 2023. The momentum in the market has been remarkable, with sales in 2024 doubling compared to 2023. This growth signals continued strong demand for residential properties, driven by both affordability and evolving consumer needs.

Outlook for 2025 and Beyond
Looking ahead, India’s housing market is set for a significant transformation by 2025. Rapid urbanization, technological innovations, and changing consumer preferences will drive the sector forward. The housing market is expected to contribute 13% to India’s GDP by 2025, reflecting its resilience and growing importance in the economy.

The residential sector is projected to become a $1-trillion market by 2030, with major growth driven by policy reforms and demographic shifts. Tier II and III cities, such as Jaipur, Indore, and Kochi, are emerging as key growth hubs, with these smaller urban centers expected to account for over 40% of new housing developments by 2025.

Furthermore, the urban homeownership rate is forecasted to rise to 72% by 2025, up from 65% in 2020. This growth is being fueled by affordable financing options and the increasing presence of younger homebuyers, particularly Millennials and Gen Z, who are expected to make up 60% of new homebuyers by 2030.

Sustainability will also continue to play a pivotal role in the residential market. Green-certified buildings, once considered a luxury, are expected to represent 30% of all new residential projects by 2025, doubling from 15% in 2020.

As we move into 2025, the residential market in India is poised for continued growth and transformation, with a strong focus on sustainability, technological innovation, and affordability.

Also Read: Dharavi Redevelopment: 10 Years of No Maintenance

The post Key Trends Shaping India’s Residential Market in 2024: Insights by Ritesh Mehta, JLL India appeared first on Square Feat India.