The Indian real estate market saw a significant upturn in land deal activity during the first three quarters of 2024, with a 65% year-on-year (Y-o-Y) increase in deal volume, according to CBRE South Asia Pvt. Ltd’s latest report. The report highlights that over 1,700 acres of land were transacted across India, with major cities like Delhi-NCR, Bengaluru, Mumbai, Chennai, and Pune leading the charge.

Delhi-NCR Takes the Lead in Land Deals

Among the regions, Delhi-NCR emerged as the top contributor, accounting for approximately 32% of all land deals during the period. Gurgaon alone made up a staggering 65% of the total land transactions in the region, followed by Noida and Greater Noida at 20%. This represents a remarkable surge in activity, with more than 100 land deals closed in 2024 compared to 60 during the same period last year.

Other key markets included Bengaluru (22%), Mumbai (12%), Chennai (10%), and Pune (8%), reflecting a strong demand in Tier-I cities. Together, these cities accounted for over 75% of the total land deal volume in the country during this period.

Diversification in Asset Classes

The surge in land deals wasn’t confined to residential projects alone. Residential assets continued to dominate, accounting for 61% of the total deal volume, covering over 870 acres—a 50% increase compared to the same period in 2023.

However, other asset classes also gained traction:

Industrial & Logistics (I&L): Represented 13% of land deals, covering 525 acres, a modest 5% increase from the previous year.

Data Centers: A growing asset class, now accounting for 6% of the total volume, with transactions spanning over 140 acres.

Office Space: Showed a notable uptick, making up 8% of the total land transactions (20 acres), up from 3% last year.

Retail and Healthcare: Retail assets covered 20 acres (2%), while hospital assets spanned 11 acres (5%), both showing diversification in investment preferences compared to 2023.

Investor Sentiment and Market Outlook

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, commented on the upward trend:
“The increased land deal activity across diverse asset classes reflects robust investor sentiment. The strong growth in traditional segments like residential and emerging categories such as data centers signals confidence in India’s long-term real estate potential.”

Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, added:
“This year’s significant increase in land deals demonstrates the growing confidence of both domestic and international investors in the Indian real estate sector. We expect this momentum to continue as favorable economic conditions drive further strategic investments.”

A Positive Outlook for Indian Real Estate

The continued momentum in land deal activity throughout 2024 showcases India’s resilience and attractiveness as a real estate investment destination. As cities like Delhi-NCR, Bengaluru, and Mumbai continue to see increased demand, both local and international investors are likely to remain optimistic about the future growth potential in the Indian real estate market.