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

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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

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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.

According to Cushman & Wakefield’s Mumbai Residential Q2 2024 report, the city saw the launch of 17,514 residential units in the second quarter of 2024, with South Central Mumbai submarkets witnessing a notable increase in high-end project launches, particularly in Mahim and Dadar. The newly operational coastal road (Marine Drive-Worli) and the upcoming Metro Line 3 (Andheri-Cuffe Parade) are significantly enhancing redevelopment prospects in the area. Capital values have risen by approximately 3-6% across all submarkets compared to previous quarters, driven by substantial progress in infrastructure.

The growing demand for housing is evident, as individuals increasingly prefer living in the city’s core. There is a marked interest in projects that offer luxurious amenities and reduced travel times, making neighborhoods like Dadar attractive for homebuyers seeking improved connectivity and realistic property prices.

The Sewri Worli Elevated Corridor establishes a crucial link between the Mumbai Trans Harbour Link and the Bandra Worli Sea Link, along with the partially operational Coastal Road, ensuring direct, signal-free connectivity between these key routes. This development enhances access to northern suburbs and provides direct routes to Navi Mumbai and the upcoming Navi Mumbai International Airport.

According to a recent report from JLL India, there has been a noteworthy increase in property registrations in August 2024 in areas such as Central and South Mumbai, indicating a diversification within the city’s property market.

The Mahim-Matunga-Dadar Belt is experiencing remarkable transformation as a micro-market. Its strategic location, equidistant from the prime CBDs of BKC and Lower Parel and bordered by the high-priced residential markets of Bandra and Worli, presents significant redevelopment opportunities. The large stock of aging infrastructure in the area provides a timely opportunity for residents to opt for redevelopment, revitalizing the housing landscape and attracting those seeking a well-priced, strategic location.

Furthermore, South Central Mumbai boasts excellent connectivity via the Western Express Highway, the Bandra-Worli Sea Link, the Coastal Road, and the upcoming Metro Line 3, significantly improving access to the rest of the city. The location embodies the vibrant culture of South Mumbai while offering unparalleled connectivity.

Retaining the timeless charm of the old city, South Central Mumbai also exudes a youthful vibrancy, offering a harmonious blend of recreational options and social amenities, including trendy cafes, inviting diners, and a variety of shopping malls.

In conclusion, South Central Mumbai emerges as a dynamic real estate market that offers more than just residences; it provides a lifestyle enriched with opportunities, culture, and convenience. With ongoing improvements in connectivity, the area is set for even greater growth. For homebuyers and investors alike, South Central Mumbai represents not just a place to live but a gateway to a vibrant urban experience, making it a prime destination in the ever-evolving real estate landscape.

Also Read: MHADA Lottery: Over 1.34 Lakh Applications Received

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Listed hotel companies were the primary drivers of transactions, accounting for 44% of the total volume, followed by owner-operators at 30%, and HNIs, family offices, and private hotel owners at 26%. The majority of transactions in H1 2024 involved operational hotels (72%), with 23% related to under-construction hotels and the remainder to land leases.

JLL expects the positive trends from the first half to continue, with two notable transactions in key hospitality markets already completed in the second half of 2024, totaling USD 70 million. Tier I markets, including Mumbai, Hyderabad, Pune, and Chennai, are forecasted to dominate transaction volumes, contributing 78%, while Tier II and III markets account for the remaining 22%.

In the first half of 2024, the sector saw the signing of 19,442 keys, predominantly in Tier II and III cities (83%), with management contracts making up 89% of these signings. This number surpasses the total for 2023, reflecting continued confidence in the sector’s growth. Additionally, 6,071 keys were added through new hotel openings, with the midscale segment holding the largest market share (46%).

Also Read: India Achieves Landmark Transparency in Global Real Estate Market

Jaideep Dang, Managing Director, Hotels and Hospitality Group, India at JLL, commented, “The first half of 2024 has set a strong foundation for a dynamic hotel transactions landscape for the rest of the year. With forecasted volumes reaching USD 413 million and significant transactions already underway, the sector’s attractiveness remains high. The increased investor interest, driven by favorable economic conditions and growing commercial activity, supports a positive outlook for the remainder of the year. The substantial hotel development activity, with over 19,440 keys signed, further underscores the sector’s robust potential.”

The post India’s Hospitality Sector Sees USD 93 Million in Investments in H1 2024 appeared first on Square Feat India.

Mumbai has the second largest GHG (Green House Gases) footprint of 22,783.08 Gg (gigagram) in India.

Commercial buildings have a share of 37% of GHG emissions in the city.

39% of any building’s energy is utilized by the Heating, Ventilation, and Air Conditioning (HVAC) system.

By Varun Singh

Mumbai’s Grade A office space currently stands at 144 million sq. ft, of which only 42% (60 million sq ft) uses centralized Heating, Ventilation, and Air Conditioning (HVAC) system which is known as air conditioning system in common parlance. Energy savings by an efficient HVAC system offers long-term solutions for reducing the energy requirements of a commercial building. Within the 60 million sq ft of office space having a centralised HVAC system, only 33 million sq ft uses water-based air conditioning which is more energy-efficient than the air-based counterpart. Due to the use of this water-based cooling system, Mumbai’s office segment is able to save 185 mn Kwh* of energy annually translating into a reduction of 1.48 lakh metric tonnes of CO2 emissions.

The conversion of the balance of 27 million sq ft centralized air-based HVAC to water-based offers the potential to save 152 million Kwh of energy annually. This would lead to an estimated reduction of INR 175 crore on the energy bill annually and a 1.2 lakh metric tonne of carbon emission. These are the major findings of the JLL report titled, “A sustainable approach through HVAC interventions.” 

“The type of HVAC technology used by a building is dictated by the climate of the region as well as the availability of power and water. The initial capital outlay also plays a key role. The capital cost for installing a water-based central system is higher than that of an air-based system due to additional equipment like cooling water towers, tanks, and water pumps. However, since water-based chillers are more energy-efficient, the operating benefits outweigh the initial cost outlay in the longer term,” said Rajat Malhotra, APAC head of Engineering operations, Work Dynamics, India, JLL

“It is heartening to note that nearly 23% (33 mn sq ft) of Mumbai’s Grade A office real estate is already utilising the benefits of centralised water-based chiller systems. A transition of those using air-based HVAC systems will double the segment’s energy savings and lead to a reduction in the city’s carbon emissions. This sustainable choice will also support the city’s annual carbon emissions reduction by 1.2 lakh metric tonnes. This upgrade—albeit involving more water consumption—along with added capital investments and technical challenges in existing buildings, will be key components in analyzing the payback period for this change. What is not in question, however, is the definite energy savings and the positive climate impact through a sustained reduction in carbon emissions,” Samantak Das · Chief Economist and Head of Research & REIS at JLL India.

Looking at a greener future

Looking forward, even offices with non-centralized HVAC systems must look at integrating such technology. Costs would be a major concern, not to mention the technical challenges of this switch in already operational buildings. Water consumption will also go up, but this is where the efficiency of the sewage treatment plant (STP) will come into action to ensure that freshwater is not wasted in running HVAC equipment. Importantly, one can upgrade cooling tower dosing systems with modern water treatment technologies and practices to reduce water wastage by cooling tower basins. Owners and operators should not hesitate from investing in treatment technologies sincewater consumption is a critical factor that can place water-based central chillers at a disadvantage, if not managed and controlled through smart operational and maintenance practices. The resultant CAPEX towards such upgrades may act as a deterrent for many asset owners/ investors, but the tangible benefits in terms of operating costs and environmental gains along with energy savings far outweigh the immediate impediments. The payback period will act as the key financial metric, but the tangible environmental benefits will support the switch to this technology in times to come, as India continues its journey to becoming a net-zero carbon economy by 2070.

Also Read: Data Centre industry in India to cross 1.3 GW capacity, grow 2.4X by 2024: JLL

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