India Is Witnessing Almost 65% Surge In Land Deals, Led By Major Cities

By Investoxpert | 04 Nov 2024 | Guide

Between January and September 2024, the number of land transactions in India's real estate market increased by a significant 65%, totaling more than 1,700 acres. This expansion was driven by major cities like Bengaluru, property in Mumbai, and Delhi-NCR. With a 61% stake, residential real estate dominated the market, but there was also a sharp increase in interest in industrial, logistics, and data centers, all of which demonstrated the high level of investor confidence in India's promising economic environment.

Land Deals Surge in Major Indian Cities

The Indian real estate market is rebounding nicely, and developers are busy buying up property tracts. According to a survey by top real estate consultancy firm CBRE South Asia, land sales increased by 65% annually between January and September 2024, involving the sale of over 1,700 acres in both urban and rural areas. In major cities like Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, and Pune, this increase was particularly noticeable.

Significant Increase in Land Deals

Over 100 land deals were finalized in the first nine months of 2024, a significant rise from roughly 60 agreements during the same time previous year. According to the research, residential properties accounted for the majority of these transactions in the Indian Real Estate market.

Strong investor confidence and the changing Indian real estate market are reflected in the rise in land deals across a variety of asset classes. Investor confidence in India's long-term real estate prospects is demonstrated by the expansion of both established industries like residential real estate and newer ones like data centers. India is hence a desirable location for real estate investments.

Delhi-NCR Leads the Land Market

With almost 32% of the market, Delhi-NCR led the way in land sales during January to September 2024. Gurgaon accounted for 65% of the land sales in this area, with property in Noida and Greater Noida following at 20% each. Significant contributions were also made by Bengaluru, Mumbai, and Chennai, which held 22%, 12%, and 10% of the market, respectively. During this time, 75% of all land transaction volumes in the Indian real estate market occurred in these four cities combined.

Residential Sector Dominates Land Transactions

More over 870 acres of land were involved in land transactions, with residential properties by the reputable Property Developers making up 61% of the total. Compared to the same time last year, this indicates a 50% rise. Next in line was the Industrial & Logistics (I&L) sector, which accounted for 13% of all land transactions and covered 525 acres, a 5% increase over the prior year.

The Growing Interest in Data Centers and Offices

During the first nine months of 2024, data centers accounted for 6% of all land acquisitions, a considerable increase in activity when compared to prior years. The office category, which accounted for around 14 acres, also grew, rising to 8% of all land sales from 3% the previous year. Compared to the previous year, the Indian real estate market showed a greater variety of assets, with retail and hospital properties accounting for 2% and 5% of total assets, respectively.

Investor Confidence Drives Market Growth

Strong trust from both local and foreign investors in the Indian real estate market is demonstrated by the notable rise in land deals this year. Strong demand and advantageous economic circumstances have combined to produce a growth-friendly atmosphere. As significant investments highlight the market's resilience and long-term growth potential, it is anticipated that this trend will continue.

Conclusion

A notable shift in the real estate market is shown by India's astounding 65% increase in land transactions, especially in big cities. Urbanization, economic expansion, and rising demand for residential and commercial space are the main causes of this increase. Investors are lured to the possibility of large profits as cities grow and infrastructure advances. But there are also issues with sustainability and fair development brought up by this boom. Policymakers must address the effects on the environment and make sure that growth benefits all residents. All things considered, the current trend offers both possibilities and difficulties that will influence India's urban development in the years to come.

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