Indian Land Deals Surge 47% in 2024, Residential Sector Leads

The number of land deals in the top eight cities increased by around 47% year over year in CY 2024, totaling over 2000 acres. Compared to over 90 land deals in CY 2023, roughly 135 were closed in CY 2024, mostly in large cities like Delhi-NCR, Bengaluru, Mumbai, Chennai, and Pune. The demand was highest in the residential segment.

With almost 40 land transactions, Delhi-NCR was the clear leader. More over 60% of the share went to Gurugram, with Noida/Greater Noida coming in second at about 25%. According to a CBRE South Asia report titled “Market Monitor Q4 2024—Investments,” this increase highlights the region’s appeal for residential and warehousing expansions.

Nearly 30 land transactions were registered in Bengaluru, with Mumbai and Chennai contributing roughly 25 and 15, respectively. Strong economic growth, supportive policy initiatives, and rising demand for residential projects are all responsible for this increase in activity across regions.

Asset-wise distribution of the total volume of deals
Over 60% of the overall volume, or about 1,190 acres, came from deals in residential assets, which also represented a 70% increase over 2023. Bolstering investor sentiment was seen in the data centers’ 10% transaction volume share (about 200 acres). Over 5% of land deal volume (approximately 580 acres) was made up of industrial and logistics assets, which showed steady expansion as a result of the growing need for manufacturing and storage space.

Diverse asset preferences were demonstrated by the other categories, which made up about 15% of the overall volume and included hospitals and mixed-use properties. Due to changing market dynamics and the rising demand for contemporary workspaces, the office and retail industries each contributed about 5% of the total.

Strong investor confidence in India’s real estate market is demonstrated by the notable increase in land deals across a variety of asset classes. According to Anshuman Magazine, Chairman & CEO-India, South-East Asia, Middle East & Africa, CBRE, the residential market is flourishing as a result of growing urbanization, advantageous regulations, and improved affordability.

At the same time, the expansion of office buildings and data centers highlights India’s position as a center for corporate and digital infrastructure. According to Magazine, this momentum places India as a top real estate investment market in 2024.

India’s potential as a strategic investment destination is demonstrated by the interest shown by investors in both established and rising sectors, such as logistics and data centers. Strong local and foreign investments are nevertheless drawn in by robust demand, creative advancements, and policy assistance. Further, Gaurav Kumar from CBRE India stated that this trend will continue to solidify, solidifying India’s standing as a robust and expansion-oriented real estate market.

Vestian Report on Real Estate Investment Surge
Global uncertainty may make it difficult to attract capital in 2025, according to Vestian, although institutional investments in Indian real estate increased 61% to USD 6.8 billion last year.

In 2023, institutional investments totaled USD 4.3 billion, according to a statement from real estate consultant Vestian. Despite a sluggish start, the real estate industry saw large institutional investments in 2024, exceeding pre-pandemic levels, according to Vestian CEO Shrinivas Rao. However, Rao stated that rising inflation, a slowdown in the global economy, and growing geopolitical tensions are all predicted to make 2025 difficult. 30% of institutional investments were in the residential sector, which recorded USD 2 billion in investments.

In 2024, investments in the housing market increased by 171% over the year before.
Of the overall institutional investments, 35% went to commercial assets, which include office, retail, co-working, and hospitality developments, while 28% went to industrial and warehousing parks. Of the overall investments, 54% came from foreign investors, 30% came from domestic funds, and the remaining 16% came via co-investment. Vestian added that in 2024, co-investments became more popular as foreign investors turned to domestic investors’ local knowledge in the face of ongoing macroeconomic uncertainties. Rao stated that if the RBI lowers the repo rate in 2025, institutional investment in Indian real estate may increase.

The image added is for representation purposes only