In 2024, India’s real estate sector witnessed remarkable growth across residential, office, and industrial domains, with annual gross leasing in the top six cities reaching 47 million square feet by Q3, marking a 23% year-on-year increase. Supported by stable interest rates, residential sales and launches in major cities surged, with average housing prices in the top eight cities rising by 11% annually. The industrial and warehousing sectors saw robust demand, recording 20.2 million square feet of leasing in the first nine months, primarily in Delhi-NCR and Chennai, driven by rising manufacturing output and a thriving logistics industry.
Institutional inflows remained strong in 2024, reflecting sustained investor confidence, with $4.7 billion real estate investments during the first nine months. The office and industrial segments accounted for over 70% of this activity. Investments are projected to reach $5-6 billion by year-end, buoyed by long-term returns and domestic growth. Meanwhile, alternative asset classes like data centers, co-living, and senior housing are gaining traction, reflecting evolving demographics and consumer preferences.
Looking ahead, 2025 is expected to be a year of consolidation and innovation. Key infrastructure developments, industrial corridor projects, and rapid urbanization will create growth opportunities, particularly in tier 2 and 3 cities. The regulatory environment continues to enhance transparency and fair pricing through initiatives like SM-REITs and state-specific RERA refinements, fostering institutionalization in the sector.
Leasing activity is anticipated to end strong, with contributions from domestic occupiers and Global Capability Centers (GCCs). Residential sales are likely to match 2023 levels, bolstered by demand across affordable, middle-income, and luxury segments. The Indian real estate sector in 2025 is poised to benefit from a supportive policy framework and investor optimism, ensuring sustained growth across diverse real estate classes.
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