In a remarkable shift for the Indian real estate market, land deal volume surged by approximately 47% year-on-year in the calendar year 2024. The total land area transacted exceeded 2000 acres across the top eight metropolitan cities, signaling a robust recovery and growth in the sector. This growth is evidenced by nearly 135 land deals closed this year, a significant increase from around 90 deals in the previous year. The report by CBRE South Asia Pvt. Ltd. highlights the concentration of these transactions in major urban areas such as Delhi-NCR, Bengaluru, Mumbai, Chennai, and Pune. Delhi-NCR emerged as the leading region, recording around 40 land deals, with Gurugram contributing a substantial share of over 60%, while Noida and Greater Noida accounted for approximately 25%. This surge in land transactions underscores the region’s burgeoning appeal for both residential and warehousing developments.
Delhi-NCR Leads the Way
Delhi-NCR’s dominance in the land deal market is largely attributed to the increasing demand for residential projects driven by a growing population and urbanization. The region’s attractive infrastructure, accessibility, and economic opportunities have made it a hotspot for developers and investors. Gurugram, a key player in this surge, has witnessed significant interest from residential developers looking to capitalize on the demand for housing. With over 60% of the deals originating in Gurugram, the city is fast becoming a preferred destination for residential and commercial investments. Noida and Greater Noida are also experiencing a similar trend, with nearly 25% of total deals taking place in these areas. As these cities continue to evolve with new developments and improving infrastructure, the momentum is expected to sustain, reinforcing Delhi-NCR’s position as a lucrative market for real estate investment.
A Broader Look at Major Cities
Following Delhi-NCR, Bengaluru recorded nearly 30 land transactions, solidifying its status as a major player in land deals in India. The city’s robust tech industry and favorable policies have attracted a plethora of investors, aiming to meet the burgeoning demand for residential and commercial spaces. Mumbai and Chennai also contributed significantly, with around 25 and 15 land deals respectively, reflecting their ongoing development and urban expansion. The collective uptick in activity across these metropolitan areas can be largely attributed to strong economic performance, supportive government policies, and an increasing appetite for residential projects among buyers. This trend indicates a positive outlook for the real estate sector, where diverse asset classes are gaining traction, catering to the evolving preferences of investors and developers alike.
Trends in Land Transactions
While residential assets accounted for a staggering 60% of the total land deal volume, translating to approximately 1,190 acres, the data centers segment showcased a notable growth trajectory with a 10% transaction volume share, equating to around 200 acres. The rising demand for data storage and processing capabilities reflects the growing digital economy and the need for robust infrastructure. Furthermore, industrial and logistics assets made up more than 5% of the land deal volume, which corresponds to around 580 acres, demonstrating a consistent growth trend fueled by increased demand for warehousing and manufacturing spaces. Other segments, including mixed-use developments and healthcare facilities, accounted for around 15% of the volume, indicating a diversification in asset preferences. The retail and office segments also contributed approximately 5% each, driven by the evolving market dynamics and the increasing need for modern workspaces. This diversification suggests a resilient and adaptive real estate market poised for further growth.
