India’s real estate sector experienced a sharp rise in land deal activity during the first nine months of 2024, with transaction volumes increasing by 65% year-over-year, according to a report by CBRE South Asia.
The report indicates a total of 1,700 acres transacted across key cities, driven by a notable surge in investor confidence.
From January to September, over 100 land deals were finalized, compared with around 60 during the same period last year, signaling a marked increase in activity across both traditional and emerging real estate sectors, as reported by the Economic Times.
The Delhi-NCR region dominated land transactions, accounting for about 32% of the total volume. Gurugram, in particular, emerged as the largest contributor within the region, with 65% of the total deals in the area. Noida and Greater Noida made up 20% of the land deals in Delhi-NCR.
Gurugram’s strong performance reflects its status as a major hub for office space and high-end residential projects, while Noida and Greater Noida have drawn increased interest for industrial and residential developments.
Other major cities also played key roles in driving land deal volumes. Bengaluru accounted for 22% of the deals, followed by Mumbai with 12%, and Chennai with 10%. Together, these cities represented 44% of the total land deals recorded in the first nine months of 2024.
Bengaluru, a center for technology and business operations, has continued to attract demand for office space. Meanwhile, Mumbai’s status as the financial capital has driven its share of residential and commercial property transactions. Chennai’s industrial and logistics sector growth contributed to its notable share.
A diverse range of asset classes contributed to the surge in land deals, with investor interest spanning traditional segments like residential and office spaces, as well as emerging sectors such as data centers and logistics hubs.
“India’s real estate sector is evolving quickly, and we are seeing growing interest in data centers, which are becoming key assets for institutional investors,” said Anshuman Magazine, chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa.
This expansion into emerging categories reflects the increased demand for digital infrastructure and logistics, driven by the country’s expanding tech and e-commerce industries.
As the Indian economy continues to grow, the country’s real estate market remains a strategic focus for both domestic and international investors. The 65% increase in land deal volume suggests continued momentum for the remainder of 2024, with established cities like Delhi-NCR, Bengaluru, and Mumbai expected to maintain their stronghold.
The diversity of investment across different asset classes and the rise of newer segments like data centers also indicate that India’s real estate landscape is broadening, positioning it for sustained growth in the years to come.