India's commercial real estate market is poised for significant growth in 2024, driven by a resilient economy and strategic policy initiatives. Real GVA growth is projected at 7.2% in FY 2023-24, an increase from 6.7% in the previous year. The retail sector is set to expand, with a focus on experiential shopping and growth beyond Tier-I cities. The first half of 2024 has already shown strong absorption rates, and this trend is expected to continue.
In the office sector, flexible workspaces are transforming business operations. Leasing activity in Q2 2024 surged, resulting in one of the highest H1 peaks on record for absorption. India’s office real estate market is being reshaped by growing demand for flexible workspaces, supported by the increasing adoption of hybrid work models. Key cities like Bengaluru, Hyderabad, and Delhi-NCR are leading the way in office project completions.
The industrial and logistics sector is also experiencing transformative growth, with a focus on sustainable facilities and multipolar strategies. India's inclusion in the JP Morgan GBI-EM index has further strengthened the sector by attracting foreign investment and stabilizing forex reserves, paving the way for reduced borrowing costs and enhanced expansion opportunities.
Looking ahead, the Indian real estate market in 2024 will be defined by its adaptability and focus on innovation. Retail, office, and industrial sectors are all expected to perform well, each driven by different market dynamics. As the market evolves, the focus on sustainability, flexible workspaces, and experiential retail environments will be crucial to unlocking the full potential of India's real estate sector, positioning it for long-term prosperity and growth. The future of Indian real estate is bright, and its impact will extend far beyond the sector itself.
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