Spread across 4.5 acres, the project marks the group’s first venture into the senior living real estate segment, reflecting its focus on wellness-driven, community-based living for India’s growing elderly population.

1 Million Sq. Ft. of Thoughtful Senior Housing

The development, with a total project value of ₹300 crore, will encompass 1 million sq. ft. and offer 400 residences to be developed in two phases.

Each home will be a well-designed 2BHK unit of approximately 700 sq. ft., priced from ₹60 lakh onwards, offering residents comfort, accessibility, and thoughtful design suited for senior lifestyles.

Holistic Care and Assisted Living Ecosystem

Announcing the launch, Dr. Niranjan Hiranandani, Founder & Chairman, Hiranandani Communities, said:

“The launch marks a pioneering collaboration between Hiranandani Parks and GTB Developers, aimed at creating a world-class, wellness-driven ecosystem tailored for senior citizens. The development will integrate holistic care, on-site medical assistance, recreational and wellness programs, assisted living facilities, and hospitality services — enabling residents to lead a secure, dignified, and fulfilling lifestyle within the broader township environment.”

The project will include 24/7 medical support, recreational spaces, wellness centers, assisted care, and curated community programs, positioning it as one of Chennai’s most comprehensive senior living developments.

Strategic Entry into a Growing Market

The move marks Hiranandani Communities’ strategic entry into India’s emerging senior housing market, which has seen a sharp rise in demand due to increasing life expectancy, nuclear family structures, and changing lifestyle preferences among retirees.

Located within the Hiranandani Parks township in Oragadam — a hub for industrial and IT employment — the project is expected to benefit from the township’s existing social infrastructure and open green spaces.

Also Read: Hiranandani partners with Padukone Sports

The post Hiranandani Forays into Senior Living: ₹300 Cr, 1 Million Sq. Ft. Project ‘Elements’ to Rise in Oragadam, Chennai appeared first on Square Feat India.

Speaking at the Real Estate Forum 2025, held on the sidelines of the property expo, Sarnaik said that the Maharashtra State Road Development Corporation (MSRDC) holds more than 13,000 acres of land at key locations including Kurla, Borivali, and other towns across the state. “To utilise these lands and redevelop the existing bus depots, the government has decided to extend the lease period from the earlier 30 years to 98 years. These ST bus depots will be developed as modern bus ports, similar to the model adopted in Gujarat,” he said.

Sarnaik urged the state’s real estate developers to actively participate in the upcoming tenders for the development of these depots.

He further revealed that the much-awaited pod taxi service will soon commence operations in Bandra-Kurla Complex (BKC) and later expand to other parts of the Mumbai Metropolitan Region, including Mira-Bhayandar and Thane.

Highlighting the government’s commitment to holistic development across sectors, Sarnaik stressed that real estate growth in semi-urban and rural regions will play a crucial role in boosting affordable housing.

Also Reads: Maharashtra Govt Considers Stamp Duty Concessions

The post Maha Transport Min to Open Tenders for 98-Year Lease of ST Bus Depots appeared first on Square Feat India.

The Rail Land Development Authority (RLDA), a statutory authority under the Ministry of Railways, has invited proposals for the grant of lease for residential and commercial development of approximately 10,801.70 sqm of railway land in Mahalaxmi, Mumbai. The lease will be offered for 99 years, opening up one of the city’s most lucrative redevelopment opportunities.

Key Details of the Tender

• Location: Mahalaxmi, Mumbai
• Site Area: 10,801.70 sqm
• Permissible FSI: 4.05
• Reserve Price (NPV): ₹993.30 crore
• Revenue Share (Minimum): 35%

The project is expected to attract major real estate players given the prime location and scale of development potential.

Important Dates

• E-bid document download begins: August 22, 2025 (18:00 hrs)
• Pre-bid meeting: September 9, 2025 (11:30 hrs, offline)
• Last date for queries: September 12, 2025 (16:00 hrs)
• Replies to queries & amendments: September 19, 2025 (18:00 hrs)
• E-bid submission deadline: October 14, 2025 (14:00 hrs)
• Opening of e-bids: October 14, 2025 (15:30 hrs)

Fees & Security Deposit

• Registration Charges: ₹2,500 (non-refundable)
• Bid Processing Fee: 0.05% of Reserve Price (₹550 – ₹5,000 + GST cap)
• Bid Document Fee: ₹1,18,000 (including GST)
• Bid Security: ₹5 crore

Contact Points

For project details, bidders may contact:

• Shri D.K. Mishra, Chief Project Manager (Mumbai) – cpm.mumbairlda@gmail.com
• Shri Prakash Chandel, Joint GM (Projects) – jgmpmumrlda@gmail.com

Additional consultant details and tender support contacts are available in the RFP document.

Why This Matters

The Mahalaxmi parcel sits in the heart of Mumbai, one of India’s most expensive and supply-constrained real estate markets. With a reserve price of nearly ₹1,000 crore and a mandatory revenue share component, this tender underscores Indian Railways’ push to monetize prime urban land and create mixed-use developments.

Industry experts expect intense competition among leading developers, with the project likely to shape Mumbai’s real estate landscape in the coming years.

Also Read: MHADA To Hold Street Plays, Stall at Railway Station To Get buyers for Homes

The post Railways Floats Tender for 99-Year Lease of Mahalaxmi Railway Land Worth Nearly ₹1,000 Crore appeared first on Square Feat India.

The acquisition significantly strengthens Sumadhura’s presence in East Bengaluru, a rapidly developing corridor identified as having high growth potential. Madhusudhan G, Chairman & Managing Director of Sumadhura Group, highlighted the strategic importance of the move. “The acquisition of this prime land in Soukya Road underscores our deep understanding of East Bengaluru’s evolving real estate landscape,” he stated. “Soukya Road is quickly becoming a highly sought-after destination, offering a unique blend of tranquil living, strong infrastructure, and robust investment potential, particularly for those seeking an escape from the city’s denser areas while remaining well-connected.”

Madhusudhan G further emphasized the company’s commitment to developing projects in such strategically located land banks, promising both strong appreciation and an elevated living experience for their customers. This acquisition reinforces the group’s dedication to accelerating growth and transforming Bengaluru’s real estate landscape, with future plans to deliver an exceptional portfolio of developments across both Bengaluru and Hyderabad.

Soukya Road itself is emerging as a premier destination in East Bengaluru, attracting considerable interest due to its blend of residential tranquility and strong growth prospects. The micro-market offers more affordable options for plots, villas, and gated communities amidst peaceful, green surroundings, coupled with excellent connectivity to major IT hubs. Its convenience is further enhanced by proximity to Purple Line metro stations (Kadugodi and ITPL), and seamless access to NH-75 and SH-35.

Residents in the area benefit from reduced congestion and easy access to essential facilities, including the renowned Soukya Holistic Health Centre, esteemed educational institutions, and prominent shopping malls. With ongoing infrastructure projects like the Peripheral Ring Road and increasing developer interest, Soukya Road is poised for substantial long-term appreciation, making it an ideal choice for both a well-rounded living experience and robust real estate investment.

Also Read: Bengaluru office leasing

The post Sumadhura Group Acquires 5-Acre Parcel in East Bengaluru, Targets ₹500 Crore Revenue appeared first on Square Feat India.

Mumbai to See 5,199 New Housing Units

As part of the plan, Mumbai will witness the construction of 5,199 housing units in the upcoming financial year, with an allocation of ₹5,749.49 crore. The focus will be on major redevelopment projects, including:

• Worli, Naigaon, and Parel BDD Chawl Redevelopment: ₹2,800 crore
• PMGP Colony Redevelopment, Jogeshwari East: ₹350 crore
• Parid Khadi Redevelopment, Bandra West: ₹205 crore
• Housing Units at Goregaon Siddharth Nagar: ₹573 crore
• Hostel for Boys and Girls at Jijamata Nagar, Parel: ₹20 crore
• Housing for Mill Workers: ₹57.50 crore
• Borivali Survey No. 160 Project: ₹200 crore
• Rehabilitation Project in Sanjay Gandhi National Park: ₹200 crore
• Pahadi Goregaon Project: ₹177.79 crore
• Malvani Slum Improvement Project: ₹50 crore
• Magathane Borivali Project: ₹85 crore
• Exer Borivali Coast Guard Scheme: ₹30 crore
• Goregaon Siddharth Nagar (Patrachawl) Redevelopment: ₹20 crore

Regional Housing Projects

MHADA aims to address the housing needs across various regions:

• Konkan Division:
• Target: 9,902 units
• Budget: ₹1,408.85 crore
• Major Projects:
  • Pachpakhadi-Thane Health Care Center and Housing Scheme: ₹15 crore
  • Majiwada-Thane Senior Citizen and Women’s Hostel: ₹30 crore
  • Virar Bolinj Club House and Swimming Pool: ₹33.85 crore
  • Vartaknagar-Thane Police Housing Redevelopment: ₹90 crore
  • Gotheghar PMAY (Urban) Scheme: ₹115 crore
• Pune Division:
• Target: 1,836 units
• Budget: ₹585.97 crore
• Nagpur Division:
• Target: 692 units
• Budget: ₹1,009.33 crore
• Major Projects:
  • Chandrapur Special Planning Authority Scheme: ₹371.20 crore
  • Textile Park Empress Mill Scheme: ₹350 crore
• Chhatrapati Sambhajinagar Division:
• Target: 1,608 units
• Budget: ₹231.10 crore
• Nashik Division:
• Target: 91 units
• Budget: ₹86 crore
• Amravati Division:
• Target: 169 units
• Budget: ₹65.96 crore

A Boost for Affordable Housing

With the new projects, MHADA aims to make affordable housing more accessible to citizens across Maharashtra. These initiatives are expected to significantly enhance housing availability while promoting urban redevelopment and infrastructure improvement.

Also Read: MHADA Extends Deadline for Lottery Applications

The post MHADA Sets Target to Construct 19,497 Houses in FY 2025-26 appeared first on Square Feat India.

Rising Demand for Smaller Luxury Homes

Real estate analysts say the demand for smaller luxury apartments in premium locations is being fueled by young professionals, small business owners, and nuclear families looking for high-end living without the space requirements of larger homes.

“Buyers today are prioritizing location, design, and amenities over size. The need for well-connected luxury residencesis growing, particularly in central locations like Dadar and Shivaji Park,” said a property consultant tracking South Mumbai’s residential market.

Viyaara Realty’s Altiora project is expected to be one of the first in the city to offer 1 and 2 BHK residences with a 10.5 ft floor-to-floor height, a feature usually found in 4 and 5 BHK apartments.

Project Details and Market Positioning

The 85,000 sq. ft. project will include 1 BHK units (445 sq. ft.) and 2 BHK units (650 & 720 sq. ft.), with pricing ranging from ₹2 crore to ₹4 crore. The residences will feature views of the western waterfront and Eastern Bay (Nava Sheva), along with amenities such as a gym, multipurpose hall, and designated parking spaces.

“Dadar and Shivaji Park remain some of the most sought-after residential areas in Mumbai due to their connectivity and social infrastructure. With transport networks like the Worli Sea Link and the upcoming Mumbai Coastal Road, access to key business districts has improved significantly,” said Manoj Paliwal, Director, Viyaara Realty.

Shifting Trends in Mumbai’s High-End Housing Market

Luxury housing in Mumbai has traditionally been associated with spacious 4 and 5 BHK apartments, but developers are now focusing on smaller premium homes in prime locations.

“Affordability within luxury housing is becoming a factor, and buyers are opting for compact but well-locatedapartments instead of moving to larger homes in less central areas,” said a real estate market analyst.

Altiora is scheduled for completion by 2029, with its registration under MahaRERA ensuring regulatory oversight. Industry experts believe that as housing preferences evolve, more developers may follow this compact luxury model in Mumbai’s high-demand areas.

Also Read: Builders fear delay in projects because of Coronavirus

The post Viyaara Realty Plans ₹50 Crore Residential Project in Dadar appeared first on Square Feat India.

Supreme Estia was launched in March 2020 and has been completed as per schedule. The project includes 2, 3, and 4 BHK residences within a gated community featuring 45,000 square feet of amenity space.

According to Vishal Jumani, Joint Managing Director of Supreme Universal, the completion of Supreme Estia reflects customer trust and confidence in the company. He noted that the project has received interest from homebuyers in Pune, Mumbai, and other regions, adding that the development has seen property value appreciation between 40% and 50% since its launch. Investor buyers have also experienced rental returns from the property.

The development consists of five towers. The first two towers were handed over in August 2023, while the remaining three towers and the clubhouse have now been completed and delivered. The clubhouse provides various facilities for residents.

Supreme Universal stated that the completion of Supreme Estia aligns with its focus on delivering urban housing projects. The company plans to continue developing similar projects in the future.

Also Read: Notice of De-Registration Applications for 2 Pune Real Estate Projects

The post Supreme Universal Completes Supreme Estia Project in Pune, Achieves ₹ 750 Crore Revenue Milestone appeared first on Square Feat India.

There are moments when the world undergoes change—sometimes imperceptibly, sometimes with the force of an undeniable reckoning. Real estate is currently experiencing such a transformation. Once considered the unchallenged domain of brick-and-mortar, unchecked expansion driven by a growing population has placed the sector in a precarious position. In 2025, the landscape is shifting.

Sustainable real estate has moved beyond being just a trend—it is now an imperative. Investors recognize it as a way to future-proof their portfolios, developers see it as the next frontier, and homebuyers, particularly those shaped by the climate anxieties of the 21st century, demand it. The goal has been to construct buildings that minimize harm to the environment. However, execution has been far from simple.

India currently stands at the crossroads of rapid urbanization. As a result, it must reimagine its built environment. Under the third-term leadership of Prime Minister Narendra Modi, the country is striving to foster a sense of environmental responsibility. The government has placed sustainability at the core of its urban planning discourse, with the goal of achieving net-zero carbon emissions by 2047. The only way to accomplish this is through policy regulation and a recalibration of what real estate development should look like in the coming decades.

The Anatomy of a Sustainable Building

Understanding the anatomy of a sustainable building is crucial. Several key components contribute to making a structure truly sustainable:

• Energy Efficiency: Integration of solar panels, energy-efficient appliances, and designs that reduce dependency on non-renewable power sources.
• Water Management: Systems that do not simply consume but conserve—such as rainwater harvesting, greywater recycling, and low-flow fixtures.
• Sustainable Materials: Use of bamboo, recycled steel, and non-toxic paints—materials that acknowledge the environmental cost of extraction and production.
• Smart Technology: Buildings that respond to their occupants by adjusting lighting, heating, and cooling through intelligent automation.
• Green Spaces: Essential pockets of nature woven into concrete sprawls, filtering air, reducing heat, and creating microclimates.

These elements are not just talking points; they are the metrics by which buildings will be assessed—both by regulators and residents.

Policy as the Catalyst

Sustainability is not a spontaneous evolution—it requires intervention. The Indian government has recognized this and responded with initiatives that push the sector toward compliance with a global green agenda. The Energy Conservation Building Code (ECBC) and the Green Rating for Integrated Habitat Assessment (GRIHA) have set benchmarks. The ECBC establishes minimum energy efficiency standards, while GRIHA provides a framework for assessing the environmental impact of buildings.

Economic incentives are even more compelling. Subsidies, tax credits, and grants encourage builders and property owners to adopt green practices. The Pradhan Mantri Awas Yojana (PMAY) Urban initiative has incorporated energy-saving designs into affordable housing developments, ensuring that sustainability is not just a privilege of the few.

However, real progress comes from research and development. Government-backed initiatives are fueling advancements in green construction materials and renewable energy solutions. Progress is not just about mandates—it is about making sustainable choices practical, accessible, and inevitable.

Shaping a Sustainable Tomorrow

This is the moment when the shape of the future begins to crystallize. Where once the only concern was cost per square foot, now the conversation includes carbon footprints, resource conservation, and resilience. Sustainable real estate is not about aesthetics or regulatory compliance—it is about creating structures that justify their existence, not just to investors but to the planet they inhabit.

Also Read: RBI withdraws accommodative policy ends, easy liquidity policy

The post The Role of Policy in Driving Sustainable Real Estate Development appeared first on Square Feat India.

Documents accessed by SquareFeatIndia reveal that the land parcel, measuring approximately 22,891.40 square meters (about 5.65 acres), includes associated buildings, development rights, future FSI benefits, and road setback entitlements. The transaction is contingent on K Raheja Corp obtaining the Intimation of Disapproval (IOD) from the Brihanmumbai Municipal Corporation (BMC) for the property’s development. The buyer is responsible for securing the IOD at its own cost and must notify the seller in writing upon its receipt. Once the IOD is obtained, the transaction must be completed within 30 days.

The payment schedule begins with ₹403 crores in December 2024, progressively increasing to ₹466 crores by December 2029, with installments tied to specific milestones. Additionally, K Raheja Corp has provided a refundable, interest-free security deposit of ₹210 crores, which will remain with the seller until the transaction’s long stop date, five years from the agreement date.

This transaction represents a significant step in Mumbai’s real estate sector, involving a 5.65-acre prime land parcel in a strategic location.

Also Read: Businessman Buys Worli Flat for Rs 23..89 Crore

The post K Raheja Corp Signs Landmark ₹466 Crore Deal for Kandivali East Land Parcel appeared first on Square Feat India.

Looking ahead, 2025 is likely to be a year of consolidation and continued innovation in Indian real estate. Sustained confidence of domestic and international investors is widely anticipated to remain unabated. While residential and office markets can potentially stabilize after consecutive peaks, industrial & warehousing demand can witness heightened traction. The growth of the industrial & warehousing segment will be fueled by rising manufacturing output and a thriving logistics industry. Notably, alternative asset classes such as data centers, co-living and senior housing are likely to witness accelerated growth, reflecting a broader and steady shift in demographics and consumer preferences. Rapid urbanization, key infrastructure project completion and industrial corridor development will create new growth opportunities, particularly in Tier-II & III cities. Furthermore, the integration of technology and sustainability will shape the future of real estate development, reinforcing the sector’s role as a cornerstone of India’s economic growth.

“2025 could be another year, wherein multiple real estate classes ride high on investor and end-user optimism. While residential and office markets can potentially stabilize and continue to grow after consecutive peaks, industrial & warehousing demand can witness heightened traction. Notably, alternative asset classes such as data centers, co-living and senior housing are likely to witness accelerated growth, reflecting a broader and steady shift in demographics and consumer preferences. Additionally, the ongoing democratization of real estate is set to gain further momentum through retail investments in fractional ownership platforms and anticipated REITs & SM-REITs throughout 2025.” says Badal Yagnik, Chief Executive Officer, Colliers India.

OFFICE

2024 round-up: Office demand continues to scale-up

The office market in India has continued its upward trajectory, registering a higher space uptake in successive quarters of 2024. Annual gross leasing across the top six cities already reached 47.0 million sq feet by the third quarter of the ongoing year, reflecting a 23% year-on-year increase. Bengaluru and Hyderabad remained dominant markets, driving almost half of the leasing activity between January and September. At India level, 2024 is likely to see Grade A absorption breach 60 million sq feet for the first time in the office market of the country. Although demand from tech occupiers has relatively stabilized, it will continue to drive one-fourth of the overall leasing. On the other hand, flex space demand is set to surge and can potentially account for one-fifth of the total demand across the top six cities in 2024. Similar to demand, the 37.4 million sq feet of completions during the first three quarters of 2024 were led by Bengaluru and Hyderabad. Overall, new supply is also likely to follow demand and surpass the 50 million sq feet mark in 2024. Vacancy levels at the end of 2024 will remain rangebound. Rentals, meanwhile, are expected to show a 5-10% annual growth across most cities.

2025 outlook: A year of market solidification and growth

India’s office market, driven by shifts in demand characteristics, will solidify in 2025 and build upon its impressive performance in 2024. The need for managed office spaces amidst evolving business requirements, flexible lease terms and cost arbitrage will continue to fuel adoption of ‘Core + flex’ model in commercial office real estate. Strong domestic growth prospects and a positive economic outlook will keep occupier as well as developer confidence intact. Overall supply is likely to follow the demand trajectory. This is likely to further firm up rentals. Moreover, as demand in Indian commercial office real estate solidifies, notwithstanding unforeseen events, annual space take up to the tune of 60 million sq feet is likely to be the new norm in the next few years.

·       Demand base to broaden further with BFSI and Engg. & Mftg, as front runners: In the upcoming year, engineering & manufacturing and BFSI occupiers are expected to together account for about 35-40% of the total office space demand. On the other hand, space uptake by technology firms will eventually stabilize and drive about 25-30% of the total demand as they continue to embrace hybrid and distributed working models.

·       GCC demand likely to be on an upswing: GCCs are expected to continue to play a pivotal role in driving the demand for Grade A office space in India, accounting for 40-50% of the leasing activity in 2025. Akin to the recent Karnataka GCC policy, focused policies can be put into motion by various state governments. As GCCs continue to scale-up their India offerings, their need for modern, high-quality office spaces will continue to witness traction over the next few years. Smaller cities like Mysuru, Mangaluru, Hubli and Dharwad can complement the GCC activity of established centers such as Bengaluru in the long term.

·       Increasing space rationalization: Going forward, as corporates increasingly implement decentralized work strategies, occupiers are likely to expand their offices in multiple locations with relatively smaller real estate footprints. Average deal size across sectors post-pandemic has rationalized at around 43,000 sq feet in 2023, an 11% dip compared to 2019 levels. At the same time, number of deals rose by 43% during the same period. Across Tier-I cities, we can expect heightened traction in mid-sized deals (50,000-99,999 sq feet). Although average transaction sizes can further rationalize below 40,000 sq feet in 2025, overall volumes in mid-sized deals can increase and contribute close to one-fifth of the Grade-A office space demand. 

·       Rising activity in Tier-II & III Cities: Corporate India is increasingly open towards operating beyond traditional commercial hubs. Cities like Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur, Kochi, Thiruvananthapuram etc. are likely to witness a significant influx of businesses, driven by factors such as lower operating costs, equally strong availability of skilled talent and infrastructure upgrades. This shift is likely to result in a significant demand surge across these smaller cities in 2025. Most of the Tier-II & III cities are likely to witness healthy annual growth in Grade A leasing activity. Additionally, taking demand cues, leading commercial developers are likely to increasingly foray into these markets with Grade A developments.

·       Flex spaces growth to continue: As flex spaces continue to transform from niche to mainstream, they are likely to increasingly define the contours of Grade A office spaces in India. Reimagination of workplace, changing perceptions and enterprise-level offerings will continue to drive heightened flex adoption in 2025. Share of leasing by flex space operators is likely to be at around 20% of the overall office demand in the upcoming year. Leading flex space operators will continue to expand their portfolios across Tier-II & III cities with an increasing number of players likely to explore asset-heavy models and acquire select commercial properties instead of leasing them from developers.

·       Green certified buildings at the forefront: With a growing emphasis on sustainability, most new office developments in India are incorporating green building practices. LEED and GRIHA-certified buildings are becoming the norm, driven by operational efficacy and compliance pressures. Looking ahead, nearly 80% of the supply pipeline over the next 2-3 years is expected to be green-certified, underscoring the shift towards more sustainable real estate development. About 95-110 million sq feet of existing office stock (≤10 years old) hold the potential for getting E-compliant with minimal capex over the next few years.

RESIDENTIAL

2024 round-up: Strong first half keeps housing sales momentum intact

During 2024, homebuyers’ sentiments have remained positive amidst a compelling domestic economic performance. Supported by stable interest rates, launches and sales across major cities of the country are likely to end on a strong note in 2024. Although there have been recent signs of demand stabilization, a strong first half is likely to ensure another year of remarkable performance by residential real estate. Average housing prices across the top eight cities have already surged 11% annually in 2024. Interestingly, with rising cost pressures, affordability issues can impact the segment more as compared to the office and industrial & warehousing segments.

2025 outlook: Housing demand to remain buoyant despite stabilization

Steady rise in average housing prices can have a stabilizing effect on the residential market in 2025, especially in the affordable housing segment. If enabling conditions prevail, a reduction in benchmark lending rates can add buoyancy to the housing market in 2025. Within residential real estate, demand for luxury and ultra-luxury segments will witness higher growth as compared to affordable and middle-income segments. Developers will continue to recalibrate their strategies and be selective in launching new projects. Amidst sustained housing demand, inventory levels, thus can drop further over the next few quarters. Ready-to-move-in properties and reputed developers with established project execution capabilities will continue to be preferred by homebuyers in 2025.

·       Uptick in luxury housing demand: 2025 is likely to witness healthy traction in luxury and ultra-luxury segments, driven by strong appetite from HNIs and NRIs. A clear preference for premium and best-in-class offerings will increasingly define the contours of the segment. Enquiries and primary sales in plotted developments, villas within gated communities and vacation homes are likely to be strong throughout 2025 and beyond.

·       Tier-II/III cities on an expansionary mode: With rapid urbanization and enabling factors such as infrastructure boost, tourism growth & employment opportunities, the organized residential market is likely to expand beyond the Tier-I cities, creating dispersed growth centers across the country. Real estate activity in the emerging smaller cities is on the rise, evident from established real estate developers foraying into these markets. Infrastructure development will further fast-track real estate growth in Tier-II & III cities including temple towns such as Amritsar, Ayodhya, Dwarka, Puri, Shirdi, Tirupati, Varanasi, etc.

·       Build-to-Rent housing: Untapped opportunity: Within residential real estate, the Build-to-Rent (BTR) segment holds immense potential, driven by rapid urbanization, changing lifestyles, and demand for professionally managed rental housing. Hassle-free contemporary living replete with amenities such as roof-top gardens, gyms, plunge pools etc. can potentially offer better tenant-product-fitment and help in tapping the relatively unexplored segment. BTR properties, often commanding higher rental rates than traditional buildings, can interest niche residential investors and developers over the next few years.

·       Growing demand for senior living to create lucrative opportunities: With India’s aging population projected to increase significantly by 2050, there will be a growing need for senior care and housing. Assuming the long-term potential in the sector, developers are likely to ramp up their activities in the senior living landscape during 2025. The senior living sector, currently valued at USD 2-3 billion, is poised for rapid growth, potentially reaching USD 10-12 billion by 2030. Although the demand-supply gap will continue to persist, market penetration and developer offerings are likely to pick up pace in both independent and assisted living formats over the next few years.

·       Living smart, living green: Demand for smart and sustainable homes will continue to be on the rise, blending advanced technology with sustainable design elements. Residential projects will increasingly witness the usage of sustainable materials and emphasize natural light, ventilation, & green spaces. Lowering carbon footprints is likely to become an important consideration for new-age homeowners, especially millennials. Additionally, installation of solar panels & smart thermostats, and resource-efficient systems including rainwater harvesting & groundwater replenishment systems will increasingly become mainstream across residential segments.

INDUSTRIAL & WAREHOUSING

2024 round-up: Segment remains upbeat with healthy demand and supply dynamics

The first nine months of 2024 saw a 17% annual growth in industrial & warehousing demand, registering 20.2 million sq feet of leasing across the top five cities of the country. Led by healthy leasing activity and improved developer confidence, the period saw new supply of 21.6 million sq feet, a 29% rise YoY. While 3PL players will continue to dominate the overall leasing activity, demand from Engineering and Fast-Moving Consumer Goods (FMCG) segments will gain further prominence, resulting in their combined demand share rising to 30-35% in 2024. Similar to the diversification in the office market, the broadening of occupier base is likely to propel Grade A warehousing space demand to 25-30 million sq feet in 2024. Almost half of the leasing activity is expected to come from Delhi NCR and Chennai.

2025 outlook: Scale-up in manufacturing and uptick in consumption to boost industrial & warehousing demand

The industrial & warehousing segment is set for continued growth in 2025, fueled by healthy domestic demand, enhanced logistics efficiency, and India’s improving capabilities as a global manufacturing hub. Strategic markets like Delhi NCR, Pune, and Chennai are expected to see greenfield developments, driven by healthy leasing activity, the ‘Make in India’ initiative, and growing developer confidence. New Industrial corridors, ramp-up in EV manufacturing facilities, and consolidation of various segments will attract robust domestic and global investments. Rentals are likely to rise in key micro-markets due to high demand and limited availability of Grade A warehouses. Developers will continue to incorporate technology and best-in-class ESG practices to meet changing occupier expectations. Emerging sub-segments such as cold storage, chemical warehousing, and self-storage are expected to increasingly contribute to overall warehousing space uptake across major markets of the country.

·       Manufacturing impetus can translate into large space requirements: Driven by 3PL and Engineering occupiers, large-sized deals (2,00,000 sq ft & above) are likely to account for 40-50% of the overall Grade A industrial & warehousing demand in 2025. Steadfast implementation of existing government programmes and projects such as Make in India, Gati Shakti, Multi-Modal Logistics Parks (MMLP), Performance Linked Incentives (PLI) scheme etc. will continue to provide a fillip to the manufacturing ecosystem in the country over the next few years, resulting in heightened demand for large industrial & warehousing spaces in key micro-markets of Tier-I cities.

·       Increased opportunities in micro-fulfilment centers in Tier-II/III cities: In-city warehouses have already gained prominence in peripheral areas of Tier-I cities, driven by surging E-commerce demand. The demand for Q-commerce and E-commerce has also been notable across Tier-II/III cities, driving demand for micro-warehouses and micro-fulfilment centers. Developers and investors are likely to increasingly scout for opportunities and gain a first-mover advantage in emerging Tier-II/III cities such as Bhopal, Coimbatore, Indore, Nashik, Surat, Visakhapatnam, etc.

·       ‘Plug & Play’ industrial parks to gain traction: Plug & play industrial parks will continue to be a focus area of the government. With envisaged plans of setting up 100 such parks in partnership with private companies, 2025 can witness significant activity from both domestic and international players. Industrial & warehousing demand in the coming years, is likely to grow multi-fold backed by steady occupier demand in ready-to-use facilities. Occupiers using Plug & Play facilities will continue to benefit from focusing on their core competencies and reducing in time-to-market cycle.

·       EVs and other emerging sub-segments likely to spur industrial & warehousing activity: Over the next 5-6 years, around USD 40 billion of investments are envisaged for phased deployment in the EV industry. This can potentially accelerate land acquisition for setting up EV and Original Equipment (OE) manufacturing units including lithium-ion batteries in 2025. As demand for EVs rises, the industrial & warehousing segment is likely to benefit the most. This segment is expected to see a surge in built-to-suit developments tailored for both global and domestic EV manufacturing companies.

·       Heightened interplay of Automation-as-a-Service model and sustainable warehouses: Occupiers are increasingly leveraging technology to scale up their operations and adapt to evolving warehousing requirements. Moreover, Artificial Intelligence (AI), and models such as ‘Automation-as-a-service (AaaS)’ and ‘Digital Twins’ can improve quality control in a holistic manner. Additionally, ESG-compliant and energy-efficient warehouses are likely to be increasingly preferred by both occupiers and developers.

INVESTMENTS

2024 round-up: Indian real estate continues to attract robust institutional inflows

Institutional inflows in Indian real estate continue to remain healthy in 2024, indicating sustained investor confidence. Of the USD 4.7 billion real estate investments during the first nine months of 2024, office and Industrial & warehousing segment together accounted for over 70% share. After witnessing subdued activity in the previous few quarters, investments in office segment surged significantly in the third quarter predominantly driven by foreign investors. Foreign investors continued to dominate overall investments with a 69% share in the total inflows. Buoyed by domestic growth prospects and long-term returns, institutional investments are likely to be around USD 5-6 billion by the end of 2024.

2025 outlook: Indian real estate continues to present compelling investment opportunities

Institutional investment in Indian real estate is expected to remain resilient in 2025 led by healthy economic growth prospects and availability of multiple capital deployment areas. Continuous improvement in ease of doing business backed by a robust regulatory environment will benefit global capital looking at real estate opportunities. Global institutional investors’ confidence will remain upbeat as they continue to make steady investments in both core and non-core assets. Domestic inflows too will not be limited to residential assets and gain further momentum in office and industrial assets. The demand for quality office assets both ready-to-move and developmental will persist, with a focus on sustainability and digitalization. As domestic businesses get familiar with global funding structures, Indian real estate can potentially witness increasing instances of alternate financing avenues such as performance credit, portfolio acquisition, asset restructuring, social impact, distressed, special situation, alternate investment funds (AIFs) and venture capital funds, in the coming years.

·       Investments from APAC countries to surge- Institutional investments in India are likely to see continued growth in 2025, with a notable surge expected from APAC countries such as Singapore, Japan, and Hong Kong. During January-September 2024, APAC investors accounted for about 28% of the total inflows into Indian real estate, up from 22% in 2021. This trend reflects India’s growing preference within developing Asia Pacific markets, driven by its strong economic performance, improved regulatory framework, and robust demand across multiple real estate segments. Further, with the anticipated reversal of the interest rate cycle and widening yield spreads between bonds and real estate, India continues to present an attractive investment proposition for global and regional investors alike.

·       Alternatives & mixed-use assets to gain larger ground: Nascent segments such as data centers, life sciences, holiday homes, senior living, co-living etc. are poised for significant growth in 2025 as investors will continue to seek newer markets and newer avenues to diversify their portfolio while enhancing risk-adjusted returns. While core sectors will continue to dominate the institutional inflows, the share of alternatives is set to rise in 2025. As Indian real estate matures across multiple segments, we are likely to witness an increase in allocation of foreign capital to alternatives. Additionally, developers are likely to focus more on mixed-use assets in leading tech parks and airport development zones which seamlessly combine office, retail, hospitality and industrial & warehousing elements.

·       Retrofitting & redevelopment to increase occupancy and financial viability: Retrofitting of older commercial developments will continue to gain traction in 2025. About 300-350 million sq feet of Grade A office stock (>10 years old) across the top six cities has the potential to get refurbished/retrofitted and become environmentally compliant. In the residential segment too, developers are likely to increasingly focus on redevelopment projects, especially in Mumbai, where the availability of greenfield land parcels is limited to a large extent.

·       Investments in developmental assets to gain prominence through platforms & joint ventures: Institutional investors have traditionally favored completed, pre-leased assets on account of low risk and steady returns. However, with capital requirements already in place for most Grade A operational projects, institutional investors are likely to increasingly partner with local developers for developmental assets across office, residential, and industrial segments. Developmental asset investments throughout 2025 will span across the early stages of a project including land acquisition, and construction.

·       Real estate players to increasingly opt for funding through primary market: Real estate companies in India have so far raised nearly INR 203 billion through Initial Public Offerings (IPOs) in 2024, almost 3X times the amount raised in 2023. Driven by strong demand across residential, commercial, and retail segments, IPOs by real estate developers, Housing Finance Companies (HFCs), and Real Estate Investment Trusts (REITs) with underlying assets such as Grade A offices and malls are likely to see continued momentum in the near-mid-term. Leading flex space operators too have been expanding their portfolios across cities and expediting their IPO plans. Along with newer office REITs, 2025 can potentially be marked by multiple flex operator IPOs.

·       Fractional Ownership: Expanding investment horizons: 2024 witnessed the first SM-REIT listing and a few more are already lined up. SEBI’s recent guidelines pertaining to SM-REITs will encourage Fractional Ownership Platforms (FOPs) to list as SM-REITs, formalizing real estate assets worth over INR 40 billion. SM REITs could see their investor base grow 20 times in the next 4-5 years, democratizing real estate ownership further and establishing fractional ownership as a preferred alternative investment avenue. Additionally, further refinement of SM-REIT guidelines can accentuate retail investor participation beyond office & retail assets and translate into fractional ownership of industrial & warehousing developments and other rent-yielding residential assets in the long term.

Also Read: Healthy investor sentiment will drive capital flow into Indian real estate

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