With over 100 deals closed during the first nine months of 2024, land deals volume saw a staggering 65% YoY increase. Led by top 6 cities of Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru and Pune, land deals amounted to 1700 acres.
According to a CBRE report , Delhi-NCR led deal activity with nearly 32% share, with Gurgaon accounting for the highest land deal share at 65%, followed by Noida/Greater Noida at 20%. This represents a 65% Y-o-Y increase in the number of deals compared to the same period last year. This is followed by Bengaluru, Mumbai and Chennai with 22%, 12% and 10% share, respectively. These four cities have a combined share of 75% of the overall land deal volumes in January-September 2024 .
Asset-wise land deals
The land activity was spread across a diverse range of segments, with residential assets taking the lead, accounting for 61% of the deal volume spanning over 870 acres, translating into a 50% increase when compared to 9M 2023. The Industrial & Logistics (I&L) segment followed, making up 13% of the total number of land deals spread over 525 acres, a 5% increase in the area acquired compared to first nine months period in 2023.
Data Centers emerged as a significant asset class in Jan- Sep’24, accounting for a 6% share in overall deal volume spread over more than 140 acres. The office segment also saw growth, recording 8% of the total number of land transactions spanning over 20 acres, up from a share of 3% (around 14 acres) last year. Retail and hospital assets each represented 2% and 5% of the deals in Jan- Sep’24, with retail covering over 20 acres and hospitals covering more than 11 acres, reflecting diversification in asset preferences compared to last year, where retail stood at 3% (around 30 acres) and hospitals at 2% (2 acres).
“The increased land deal activity across diverse asset classes reflects a robust investor sentiment and the evolving dynamics of the Indian real estate market. As we witness strong growth in both established segments including Residential, office and emerging categories such as Data Centers, indicates that investors are increasingly confident in the long-term potential of India’s real estate sector. This optimism positions India as a strategic market for real estate investments”, says Anshuman Magazine, Chairman & CEO -India, South-East Asia, Middle East & Africa, CBRE.
Adds Gaurav Kumar, Managing Director, Capital Markets and Land , CBRE, India, “The significant increase in land deals this year highlights the strong confidence of both domestic and international investors in India’s real estate potential. The robust demand across various markets, combined with favourable economic conditions, have created an environment ripe for growth. We expect this momentum to continue, driven by strategic investments that underscore the stability and long-term growth opportunities of the market”.
1
2
3
4
5
6