India’s Indian real estate market experienced a notable 65% rise in land deals between January and September 2024, amounting to over 1,700 acres. Major urban centers like Delhi-NCR, Mumbai, and Bengaluru spearheaded this growth. Residential properties dominated the scene with a 61% share, while interest in industrial, logistics, and data centers also surged, reflecting strong investor confidence in India’s favorable economic climate.
Land Deals Surge in Major Indian Cities
India’s Indian real estate sector is showing a strong recovery, with developers actively purchasing land parcels. A report by CBRE South Asia, a leading real estate consulting firm, revealed that land transactions jumped by 65% year-on-year from January to September 2024, with over 1,700 acres transacted across both metropolitan and peripheral regions. This surge was most pronounced in key cities such as Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, and Pune.
Significant Increase in Land Deals
During the first nine months of 2024, more than 100 land deals were completed, a sharp increase from about 60 deals in the same period last year. The Indian real estate sector saw residential properties take the largest portion of these transactions, the report noted.
Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East, and Africa, stated, “The increase in land deals across diverse asset classes reflects robust investor confidence and the evolving landscape of the Indian real estate market. The growth in traditional sectors like Residential and emerging categories such as Data Centers shows that investors are increasingly optimistic about India’s long-term real estate potential. This makes India a strategic destination for real estate investments.”
Delhi-NCR Leads the Land Market
From January to September 2024, Delhi-NCR took the lead in land transactions, securing about 32% of the market. Within this region, Gurgaon held a 65% share of the land deals, followed by Noida and Greater Noida at 20%. Bengaluru, Mumbai, and Chennai also contributed significantly, accounting for 22%, 12%, and 10% of the market respectively. Together, these four cities made up 75% of the total land transaction volumes in the Indian real estate market during this period.
Residential Sector Dominates Land Transactions
The majority of land transactions were focused on residential properties, accounting for 61% of the total, covering more than 870 acres. This represents a 50% increase over the same period last year. The Industrial & Logistics (I&L) sector came in next, comprising 13% of the total land deals and covering 525 acres, marking a 5% rise compared to the previous year.
Growing Interest in Data Centers and Offices
Data centers saw a notable increase in activity, representing 6% of total land deals during the first nine months of 2024—a significant rise compared to previous years. The office segment also showed growth, increasing to 8% of total land transactions, up from 3% the year before, which covered around 14 acres. Retail and hospital properties accounted for 2% and 5%, respectively, reflecting a broader diversification of assets compared to last year in the Indian real estate sector.
Investor Confidence Drives Market Growth
Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India commented, “The sharp increase in land deals this year highlights strong confidence from both domestic and international investors in the Indian real estate market. The combination of robust demand and favorable economic conditions has created an environment ripe for growth. We expect this momentum to continue as strategic investments further emphasize the market’s stability and long-term growth potential.”
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