ANAROCK’s data reveals that while the total number of land deals in 2025 stood at 126 (slightly below 133 in 2024), the cumulative land area transacted surged to over 3,772 acres — significantly higher than the 2,514+ acres recorded in 2024. Developers, backed by stronger balance sheets and clearer demand signals, aggressively acquired land for diverse uses including residential, mixed-use, industrial-logistics, data centres, warehousing, and retail.

“MMR led the activity in number of land deals in 2025, with 32 deals spanning over 500+ acres,” said Anuj Puri, Chairman – ANAROCK Group. “This accounted for over 13% of the total land transacted across India. Residential, commercial, data centres, industrial and plotted developments are among the planned developments in the region.”

Key Highlights from 2025 Land Deals (ANAROCK Research):

• Residential Development dominated with 96 deals covering approx. 1,877+ acres (including plotted developments, townships, luxury villas).
• Industrial & Logistics Parks — 4 deals for 597+ acres.
• Mixed-Use Developments — 8 deals for approx. 1,046 acres.
• Commercial & Data Centres — 12 deals for approx. 79.6 acres.
• Warehousing — 2 deals for 107 acres.
• Retail — 1 deal for 13.67 acres.
• Undecided — 3 deals for 51.25 acres.

City-wise Performance (Top 7 Cities):

• MMR: 32 deals, 500.46 acres (highest volume).
• Bengaluru: 27 deals, 454.22 acres.
• Pune: 18 deals, 308.49 acres.
• NCR: 16 deals, 137.22 acres.
• Hyderabad: 9 deals, 57 acres.
• Chennai: 8 deals, 121.85 acres.

In tier-2 and tier-3 cities, Ahmedabad led with 3 deals for 603.67 acres, followed by notable activity in Amritsar (2 deals, 520 acres), Vadodara (2 deals, 132 acres), Nagpur (2 deals, 81 acres), and others.

Notable Large Deals in 2025:

• Goisu Realty (Sumitomo) acquired 13.02 acres in Mumbai for commercial use (₹2,539 crore).
• Aakar Developers picked up 10 acres in Navi Mumbai for residential (₹2,120 crore).
• Prestige Group secured 11 acres in Hyderabad for mixed-use (₹1,556 crore).
• Omaxe Ltd took 260 acres in Amritsar for mixed-use (₹560 crore).
• Macrotech Developers (Lodha) bought 20 acres in Bengaluru for residential (₹500 crore).

Despite rising land prices in prime metros like MMR and Bengaluru, developers continued to target high-potential parcels, driven by strong residential absorption, infrastructure projects, and demand for alternative asset classes such as data centres and logistics.

The trend reflects a strategic shift toward integrated, large-scale developments rather than standalone luxury projects. Industry experts view 2025’s higher land volume as a positive signal for sustained real estate growth in 2026 and beyond.

Also Read: MMR saw 11 land deals involving 768 acres of area

The post MMR Tops India’s Land Acquisition in 2025 with 32 Deals & 500+ Acres Transacted appeared first on Square Feat India.

Despite global economic uncertainties and moderated supply additions, Mumbai’s real estate sector demonstrated resilience, underpinned by steady end-user demand, disciplined developer activity, and growing occupier confidence—particularly from Global Capability Centres (GCCs).

Office Market: Leasing at 9.8 mn sq ft, Second Best in Over 10 Years

Mumbai’s office market closed 2025 with 9.8 million sq ft of total leasing, marking the second-highest annual leasing volume in more than a decade, even as volumes declined marginally by 5% year-on-year. Leasing activity in H2 2025 stood at 4.3 million sq ft, supported largely by large-format transactions in scalable suburban micro-markets.

New office completions during the year fell by 12% YoY to 5.1 million sq ft, helping keep vacancy levels contained at 18.3%. The slowdown in fresh supply, coupled with quality-driven demand, contributed to firm rental growth across key business districts.

Average transacted office rents in Mumbai rose 6% YoY to INR 125 per sq ft per month. Core business districts such as BKC and Worli continued to command premium rents in the range of INR 350–600 per sq ft per month, while suburban locations emerged as cost-effective alternatives for occupiers seeking scale.

GCCs Emerge as the Primary Growth Engine

A defining shift in 2025 was the sharp rise in Global Capability Centres (GCCs) as a key occupier segment. GCCs accounted for 27% of total leasing in H2 2025, nearly tripling from 9% a year earlier. This growth was driven primarily by BFSI, technology, and engineering firms expanding analytics, product development, and shared services operations in Mumbai.

India-facing occupiers remained the largest segment with a 40% share, though significantly lower than the 72% share recorded in H2 2024, indicating increasing diversification of demand. Third-party IT and ITeS firms also expanded their footprint, accounting for 20% of leasing, particularly in cost-sensitive suburban hubs.

Large transactions were concentrated in SBD West and PBD, which together contributed over 60% of total leasing, led by Andheri East, Goregaon, Airoli, and Thane.

Commenting on the trend, Gulam Zia, International Partner and Senior Executive Director, Knight Frank India, said Mumbai’s deep talent pool and improving infrastructure continue to make it a preferred destination for global firms setting up high-value operations.

Residential Market: Stable Growth Despite Higher Prices

Mumbai also retained its status as India’s largest residential market, registering 97,188 housing unit sales in 2025, a 1% YoY increase despite a higher base. The second half of the year was particularly encouraging, with H2 2025 sales rising 3% YoY to 50,153 units.

Average residential prices increased 7% YoY to INR 8,856 per sq ft, reflecting sustained demand and limited speculative supply. Developers exercised caution, reducing annual housing launches by 10% to 87,114 units, aligning supply with absorption levels.

This disciplined approach led to a 6% reduction in unsold inventory, which stood at 155,604 units by the end of 2025—signaling improved market health.

Shift Towards Higher Ticket-Size Homes

A notable trend during H2 2025 was the declining share of affordable housing (homes priced below INR 5 million). The segment’s contribution to sales fell from 42% in H2 2024 to 37% in H2 2025.

In contrast, demand strengthened in higher ticket-size categories, especially the INR 20–50 million segment, which emerged as the market’s sweet spot with a healthy Quarters-to-Sell (QTS) ratio of 3.9. Sales in the INR 50–100 million segment also gained traction, reflecting growing buyer confidence in premium and lifestyle-oriented housing.

Infrastructure Boosts Peripheral Demand

The Peripheral Central Suburbs remained Mumbai’s strongest residential demand driver, accounting for 28% of total sales. Demand in these locations was further supported by the operationalisation of major infrastructure projects such as the fully underground Metro Line 3 and the Mumbai Trans Harbour Link (Atal Setu), significantly improving connectivity and commute efficiency.

According to Knight Frank, improved metro access and infrastructure-led development are enhancing the value proposition of peripheral locations, making them increasingly attractive to end-users seeking better affordability without compromising connectivity.

Outlook: Consolidation with Long-Term Stability

Mumbai’s real estate market in 2025 reflected a phase of healthy consolidation, marked by balanced supply-demand dynamics, price appreciation driven by genuine demand, and a structural shift toward higher-quality office and residential assets.

With GCC-led office demand, infrastructure-backed residential growth, and disciplined developer strategies, Mumbai is well-positioned to maintain its leadership across both commercial and housing segments in the coming years.

Also Read: Metro Line 3: A Game-Changer for Mumbai’s Real Estate Landscape

The post Mumbai Solidifies Position as India’s Largest Residential Market in 2025; Office Leasing Hits Second-Highest Level in a Decade appeared first on Square Feat India.

Below is the full, detailed breakdown

Home Affordability in India Doubles in 15 Years — Income Rise, Policy Push, and Infrastructure Boom Rewrite the Market

Affordability Improves Sharply Across Tier I Cities

A new Colliers India report reveals that the average Price-to-Income (P/I) ratio — the most widely used measure of housing affordability — has dropped from 88.5 in 2010 to 45.3 in 2025.

This means an average homebuyer today needs almost half the years of income to buy the same size home compared to 15 years ago.

Why this matters:

A lower P/I ratio = higher affordability = stronger purchasing power.

This shift has been driven primarily by:

• Average income growing at ~10% CAGR
• Average housing prices rising only 5–7% CAGR

Cities like Ahmedabad, Hyderabad, Bengaluru and Pune have emerged as the most affordable among the Tier I markets.

What’s Fueling This Big Affordability Jump?

1. Rising Incomes Outpacing Housing Prices

Income levels have more than quadrupled since 2010.
Home prices did rise — but at a much slower pace than salary increases.

This widening gap directly boosted affordability.

2. Massive 10X Surge in Home Loan Credit

India’s residential loan book has exploded:

• ₹3 lakh crore in 2010 → ₹30+ lakh crore in 2025
• Housing now accounts for 17% of all bank credit (up from 10% in 2010)

This shows both:

• Banks’ confidence in the sector
• Homebuyers’ ability to borrow and repay

3. Policy Push: RERA, PMAY, SWAMIH, GST, NBFC cleanup

The last decade brought unprecedented regulatory clean-up:

• RERA improved transparency
• PMAY boosted low-income homeownership
• SWAMIH rescued 100+ stuck projects
• GST rationalization lowered material costs
• Monetary policy kept home loan rates attractive

In 2025, the repo rate is down to 5.5%, with further cuts likely due to soft inflation — supporting affordability even more.

Infrastructure Is Redefining Housing Markets

Expressways, metro lines, new airports, and decentralized office hubs are pushing demand to suburban and peripheral markets.

This has created:

• New residential corridors
• Lower entry prices away from city centers
• Improved connectivity reducing commuting time

The price gap between central and peripheral areas has narrowed in most cities — and will continue to shrink as infrastructure ramps up.

City-Wise Highlights (P/I Ratio Improvements)

What Does This Mean for Homebuyers?

1. Buying Power Is Strongest in 15 Years

With income rising faster than prices + lower interest rates → more people can afford homes today.

2. Peripheral Markets Offer The Best Deals

Price arbitrage between central and suburban locations is flattening — meaning prices will rise faster in outskirts in coming years.

3. Mortgage Availability Has Never Been Better

Banks are lending aggressively — housing loans are now the single largest retail lending category in India.

4. Demand Will Stay High

Developers may still push premium housing, but middle-income and affordable segments will see increased institutional attention.

Also Read: CSR Funds to Fuel Affordable Homes in Maharashtra

The post 📰 “An Average Homebuyer Now Needs Half the Years of Income to Buy a Home Compared to 15 Years Ago” appeared first on Square Feat India.

Luxury Drives the Boom, But Affordable Housing Falters

The report reveals that India’s housing value growth is being fuelled almost entirely by the luxury segment.
Apartments priced above ₹2 crore recorded a 24% jump in sales, while ultra-luxury homes above ₹10 crore grew 40% YoY.
However, this top-heavy growth hides a worrying reality — sales volumes across the country remained flat (0% YoY), indicating that fewer people are buying homes even as prices rise.

“The surge in high-value transactions propelled the total sales value to ₹8.27 lakh crore, masking flat unit sales volume,” said Pankaj Kapoor, Managing Director, Liases Foras.
“Meanwhile, affordable and mid-segment homes saw declines of up to 13% and 7%, showing that the market’s growth is now heavily concentrated at the top.”

Construction Slowdown: The Silent Crisis

Perhaps the most alarming finding is that the actual pace of construction has slowed sharply, widening the gap between promises and deliveries.
According to Liases Foras, the ratio of constructed supply to total marketable supply has fallen from 75% in 2017 to just 57% in 2025.

“This gap signals slower revenue recognition for builders, higher execution risks, and potential project delays,” said a spokesperson for Liases Foras.
“Builders are committing more projects than they can deliver, meaning the current boom in sales isn’t being matched by actual housing stock on the ground.”

This slowdown could lead to project bottlenecks, delayed handovers, and liquidity pressure if not addressed swiftly — especially for homebuyers awaiting possession in under-construction projects.

Mumbai Tops Sales, NCR Faces the Highest Risk

The report highlights strong regional contrasts:

• Mumbai Metropolitan Region (MMR) leads with 26% of India’s total housing sales value and 8% growth in unit sales YoY.
• National Capital Region (NCR) ranks second in value but faces the highest internal stress — with 45% of its unsold inventory classified as stalled projects.
• Tier-2 cities saw a 12% fall in sales volume, though new supply levels remained stable.

Market Has Likely Peaked

After a record FY2024–25, Liases Foras now believes the market has hit its peak. Sales volumes have already declined 3% in Q1 and 1% in Q2 of FY26, pointing to possible stagnation ahead.

“India’s housing cycle appears to be nearing saturation,” the report concludes, adding that luxury demand alone cannot sustain long-term growth without broader affordability and faster construction.

Also Read: Buying a House? Beware! These Real Estate Projects Are Up for De-registration

The post 📰 Homebuyers Beware: India’s Housing Boom May Have Peaked — Construction Delays Raise Red Flags 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

The post 🏙️ Premium Housing Sales Rise in 2025 Even as Overall Home Sales Fall 12% appeared first on Square Feat India.

Despite a small quarterly dip of just 2%, institutional investments in Indian real estate reached USD 1.76 billion in Q3 2025, the highest third-quarter inflow in four years. This marks an impressive 83% increase compared to last year, a sign of growing investor confidence in India’s property market.

Indian Money Keeps the Market Moving

While foreign capital flows have slowed down, Indian institutional investors and co-investments (where domestic and foreign players jointly fund projects) have surged sharply.

• The share of domestic investments rose to 51% in Q3 2025, a jump of 115% year-on-year.
• Co-investments now account for 41% of total inflows, up from just 15% a quarter ago.
• Foreign investment, on the other hand, dropped to a yearly low of 8%, compared to 46% in Q3 2024.

Experts say this reflects a power shift in who funds India’s growth story. “While foreign investors are cautious amid global headwinds, the rise in domestic and co-investments shows how confident Indian investors are about real estate’s long-term potential,” said Shrinivas Rao, CEO of Vestian.

Commercial Real Estate Leads the Way

The commercial property segment—which includes offices, retail, co-working, and hospitality—remains the biggest magnet for investors, commanding 79% of total institutional inflows.
Investments in this segment rose 104% year-on-year to nearly USD 1.4 billion, underscoring India’s position as a stable hub for corporate leasing and global capability centers (GCCs).

Developers focusing on Grade A office spaces, flexible workspaces, and retail centers are expected to benefit most from this trend.

Residential Investments Ease, But Demand Stays Strong

The residential sector saw a short-term dip, attracting USD 192 million, or 11% of total investments, down from 21% in the previous quarter. However, this still marks a 6% annual rise—showing that while investors are more selective, they remain optimistic about housing demand.

For homebuyers, this means developers are likely to maintain construction pace, backed by stable domestic funding rather than foreign capital. Affordable and mid-income projects, which rely less on offshore money, will continue to progress steadily.

Warehousing and Industrial Sector Gathers Steam

Institutional investment in industrial and warehousing rose 168% over the previous quarter, reaching USD 85.8 million.
The demand for logistics parks and storage infrastructure is being driven by e-commerce growth and manufacturing expansion under Make-in-India, giving investors a new growth story beyond offices and housing.

What This Means for Homebuyers and Developers

1. No slowdown in project funding:
   With Indian investors filling the gap left by foreign funds, developers can continue to raise capital for ongoing and new projects.
2. Stable housing prices likely:
   Since money flow remains steady, property prices are expected to stay stable rather than surge due to financing shortages.
3. Domestic confidence growing:
   More Indian institutions backing real estate reflects long-term trust in the market’s fundamentals — a reassuring sign for homebuyers.
4. More regional and mid-size developers to benefit:
   Domestic capital often looks for diversified opportunities, which could help mid-tier builders in Tier 2 and Tier 3 cities secure financing more easily.

Expert View

“Indian investors are showing tremendous confidence in domestic real estate,” said Shrinivas Rao, FRICS, CEO, Vestian.
“Even as global uncertainty makes foreign funds cautious, the strong participation of Indian capital ensures liquidity, stability, and continued growth across asset classes.”

The Bottom Line

While global uncertainty has made foreign investors cautious, India’s real estate story is now powered by local confidence.
For homebuyers, this means project deliveries will stay on track and the market will continue evolving with more Indian money driving development — a healthy sign of self-reliance and sectoral maturity.

The post 🏠 Why Homebuyers Shouldn’t Worry Even as Foreign Investors Exit Indian Property Market appeared first on Square Feat India.

A Festive Season Without the Spark

The usually vibrant festival season — known for record property sales — failed to cheer Mumbai’s real estate market in 2025. Between October 20 and October 26 (Monday to Saturday), Mumbai recorded only 915 property registrations, an unusually low figure for a period that typically drives festive housing demand.

In total, between October 1 and October 26, Mumbai saw 9,161 properties registered, reflecting a clear dip in buyer sentiment.

For context, the average daily property registrations in October stood at 352, but the festival week saw daily numbers dropping well below this benchmark.

Key Data Points

• Period: October 20–26, 2025 (Monday–Saturday)
  Registrations: 915
• Dhanteras (Oct 18, 2025): 284 registrations
• Diwali (Oct 20, 2025): 249 registrations
• Total registrations (Oct 1–26, 2025): 9,161
• Average daily registration: 352

Even during key auspicious days like Dhanteras and Diwali, when homebuying typically peaks, the numbers remained disappointing — underscoring a market slowdown that’s hard to ignore.

What the Dip Suggests

Real estate professionals view the festival season as a crucial sentiment booster. Developers launch new projects, banks roll out festive loan offers, and buyers line up to register homes on “shubh muhurats.”
But this year, the enthusiasm was missing.

Analysts attribute the subdued registrations to multiple factors:

• High property prices despite slower absorption.
• Buyers holding back, expecting post-festival corrections.
• Limited festive incentives from developers compared to previous years.
• A shift in buyer focus from luxury to affordable segments where new launches are limited.

A Warning Sign for Mumbai’s Real Estate Market

The festival slump has raised a red flag for the city’s real estate ecosystem.
Traditionally, October–November contribute a significant share of annual registrations, but 2025 has broken that trend.

Industry observers now fear this could be the start of a larger market correction if developers don’t adjust pricing expectations.

A senior industry insider remarked,

“The home loan rates are at one of their lowest levels in recent years. If buyers still aren’t closing deals, it clearly signals a trust or pricing issue. The festive dip is not just seasonal — it’s structural.”

The Bigger Picture: Price vs. Sentiment

While developers have resisted price reductions, homebuyers appear unwilling to commit at current valuations.
The outcome: festive stalls, delayed deals, and growing market nervousness.

If this sentiment persists, the fourth quarter of 2025 could see muted performance, undoing much of the momentum built earlier in the year.

Market experts now believe “price correction, not interest rates,” will determine the next phase of growth in Mumbai’s housing market.

Takeaway

The numbers don’t lie.

• 915 registrations in the week of Diwali,
• Only 249 on Diwali day,
• 9,161 till October 26,
• All well below the daily average of 352.

For a city where homes are often registered on auspicious occasions, this Diwali told a different story — one of buyer hesitation and market fatigue.

The post Mumbai’s Festive Gloom: Property Registrations Hit New Low, Signalling a Slowdown Ahead appeared first on Square Feat India.

India’s office real estate market continues its upward trajectory in Q2 2025, clocking a robust 18.79 million sq. ft. of gross absorption — a 10% YoY and 5% QoQ rise — according to Vestian Research.

The IT-ITeS sector emerged as the top performer, absorbing 9.4 Mn sq. ft., or 50% of total leasing activity, followed by flex spaces, which saw an impressive 68% growth over the previous quarter, absorbing 2.63 Mn sq. ft. and accounting for 14% of pan-India office absorption.

Sector-Wise Absorption – Q2 2025

Others include Aviation, Consulting, Engineering, Retail, Healthcare, Infra, Logistics, Telecom, FMCG, etc.

Key Southern Cities Dominate

Bengaluru, Hyderabad, and Chennai contributed nearly 80% of the flex space absorption across the top 7 cities — signaling the growing preference for hybrid and agile workspaces in tech-dominated hubs.

“India’s office market continued to grow in Q2 2025, largely driven by robust absorption in Bengaluru, Hyderabad, and Mumbai. With enterprises returning to office and Grade-A completions due in H2 2025, we expect this growth to sustain.”
— Mr. Shrinivas Rao, CEO, Vestian

City-wise Office Market Performance – Q2 2025

Total India Q2 2025 Absorption: 18.79 Mn sq. ft.
Total New Supply: 14.7 Mn sq. ft.

Highlights & Insights

Flex Spaces on the Rise

• Grew 68% QoQ, now 14% share in Q2 vs. 9% in Q1
• Southern cities = 80% of flex space leasing
• Preferred by startups, SMEs, and hybrid-model enterprises

IT-ITeS Still the Backbone

• 50% share of leasing
• Strongholds: Yeshwantpur (Bengaluru), Nanakramguda (Hyderabad), Airoli (Mumbai)

Regional Momentum

• South India share in total absorption surged to 59% in Q2 2025, up from 46% in Q1

City Snapshots

• Bengaluru: Bounced back after two weak quarters; highest absorption among all cities
• Chennai: Absorption grew 13% QoQ, aided by massive supply influx
• Hyderabad: Strong quarterly jump of 34%
• Mumbai: Absorption dropped 14% QoQ, despite YoY growth
• Kolkata: Highest absorption in 2 years
• Pune: Sharp drop in leasing but strong new supply
• NCR: Mixed trend – YoY surge but marginal QoQ dip

Market Summary Box

India Office Market – Q2 2025:

Full Year Projection: Likely to cross 75 Mn sq. ft. – highest ever

Gross Absorption: 18.79 Mn sq. ft.

YoY Growth: 10%

QoQ Growth: 5%

Flex Space Growth (QoQ): +68%

Top Sectors: IT-ITeS (50%), Flex (14%)

Top Cities: Bengaluru, Hyderabad, Mumbai

Total H1 2025 Absorption: 36.75 Mn sq. ft. (+21% YoY)

Also Read: Reality Hits Realty Sector Hard

The post IT-ITeS Powers India’s Office Market in Q2 2025; Flex Spaces Gain Traction with 68% Surge appeared first on Square Feat India.

India’s residential real estate sector is expected to sustain steady growth over this fiscal and the next, as sales and demand stabilize following three years of strong post-pandemic recovery, according to an analysis by CRISIL Ratings.

The report, covering 75 major real estate companies that account for ~35% of national residential sales, projects a compound annual growth rate (CAGR) in sales volumes of 5–7%, with average prices rising 4–6%. This translates to a steady 10–12% growth in value terms.

Demand Revival Supported by Lower Rates and Premium Housing
Last fiscal, demand remained flat, weighed down by higher capital values and delays in launches due to elections and regulatory changes in some states. However, the current and next fiscals are expected to see demand rebound on the back of:

• Improving affordability as interest rates soften
• Sustained appetite for premium and luxury homes
• Normalization of project launches across key micro-markets

“The premium and luxury segments in the top seven cities have seen their share of launches jump from 9% in 2020 to 37% in 2024,” said Gautam Shahi, Director, CRISIL Ratings.
“This trend is expected to continue, with premiumisation driving 38–40% of launches in 2025 and 2026.”

Premiumisation Redefining New Supply
In contrast to the rising prominence of premium housing, the affordable and mid-segments are expected to decline further, largely due to rising land and input costs that have rendered these categories less attractive to developers.

Launch Share by Segment (%):

Supply Still Outpacing Demand
Developers had already ramped up launches over the past three years, leading to supply outpacing demand. As this trend continues, inventory levels are expected to increase slightly:

• From 2.7–2.9 years in the past two fiscals
• To 2.9–3.1 years over the current and next fiscal

Deleveraged Balance Sheets and Strong Collections Underpin Stability
Despite the supply overhang, developers’ credit profiles have strengthened significantly due to:

• Robust collections from strong sales
• Timely project execution
• Adoption of asset-light development models (joint ventures, joint developments)
• Substantial equity inflows, especially through qualified institutional placements (QIPs)

In fact, the QIP proceeds as a percentage of outstanding debt rose from 13–16% in the preceding three fiscals to 24% last fiscal, reflecting growing investor confidence.

Debt Metrics at a Healthy Level

“The continuing improvement in cash flow from operations and rising equity inflows have strengthened credit metrics,” said Pranav Shandil, Associate Director, CRISIL Ratings.
“The debt-to-CFO ratio is projected to improve to 1.1–1.3 times this fiscal and the next, down from 1.2–1.5 times previously and significantly below the ~5.6 times seen in FY20.”

Key Credit Metrics Snapshot:

Outlook: Prudent Leverage, Controlled Inventory Key to Stability
While the outlook remains positive, CRISIL notes that developers’ ability to maintain moderate leverage and control inventory will remain critical for sustaining credit strength.

The report underscores that premiumisation, improved affordability, and healthy cash flows will drive steady growth—albeit at more moderate rates compared to the surge seen in the immediate post-pandemic years.

Also Read: ICRA and CRISIL enhance Commercial Paper limits of Godrej Properties Limited to INR 2000 crore

The post Residential Sales to Maintain Steady 10–12% Growth Path: CRISIL Ratings 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

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