Land deal volume in Jan-Sep’24 surged by 65% Y-o-Y, dominated by metros and tier-I cities
CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, today announced the findings of its report, ‘Market Monitor Q3 2024 - Investments’. According to the report, land deal volume in India surged by 65% Y-o-Y, reaching ~1,700 acres dominated by 6 major Indian cities (Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune) in Jan-Sep’24. During this period, over 100 land deals were closed, up from over 60 deals during the same period last year.
In Jan-Sep ’24, Delhi-NCR led land deal activity with approximately 32% share, with Gurgaon accounting for the highest land deal share at ~65% and Noida/Greater Noida at ~20%. This represents a ~65% Y-o-Y increase in the number of deals compared to the same period last year. This is followed by Bengaluru, Mumbai and Chennai with ~22%, ~12% and ~10% share, respectively. These four cities have a combined share of ~75% of the overall land deal volumes in Jan-Sep’24.
Asset-wise land deals
For the Jan- Sep’24 period, land activity was spread across a diverse range of segments, with Residential assets taking the lead, accounting for 61% of the deal volume spanning over 870 acres, translating into a 50% increase when compared to 9M 2023. The Industrial & Logistics (I&L) segment followed, making up 13% of the total no. of land deals spread over 525 acres, a 5% increase in the area acquired compared to Jan-Sep ’23.
Data Centers emerged as a significant asset class in Jan- Sep’24, accounting for a 6% share in overall deal volume spread over more than 140 acres. The Office segment also saw growth, recording 8% of the total no. of land transactions spanning over 20 acres, up from a share of 3% (around 14 acres) last year. Retail and Hospital assets each represented 2% and 5% of the deals in Jan- Sep’24, with Retail covering over 20 acres and Hospitals covering more than 11 acres, reflecting diversification in asset preferences compared to last year, where Retail stood at 3% (around 30 acres) and Hospitals at 2% (2 acres).
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE,said,“The increased land deal activity across diverse asset classes reflects a robust investor sentiment and the evolving dynamics of the Indian real estate market. As we witness strong growth in both established segments including Residential, office and emerging categories such as Data Centers, indicates that investors are increasingly confident in the long-term potential of India’s real estate sector. This optimism positions India as a strategic market for real estate investments”.
Asset-wise land deals
For the Jan- Sep’24 period, land activity was spread across a diverse range of segments, with Residential assets taking the lead, accounting for 61% of the deal volume spanning over 870 acres, translating into a 50% increase when compared to 9M 2023. The Industrial & Logistics (I&L) segment followed, making up 13% of the total no. of land deals spread over 525 acres, a 5% increase in the area acquired compared to Jan-Sep ’23.
Data Centers emerged as a significant asset class in Jan- Sep’24, accounting for a 6% share in overall deal volume spread over more than 140 acres. The Office segment also saw growth, recording 8% of the total no. of land transactions spanning over 20 acres, up from a share of 3% (around 14 acres) last year. Retail and Hospital assets each represented 2% and 5% of the deals in Jan- Sep’24, with Retail covering over 20 acres and Hospitals covering more than 11 acres, reflecting diversification in asset preferences compared to last year, where Retail stood at 3% (around 30 acres) and Hospitals at 2% (2 acres).
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE,said,“The increased land deal activity across diverse asset classes reflects a robust investor sentiment and the evolving dynamics of the Indian real estate market. As we witness strong growth in both established segments including Residential, office and emerging categories such as Data Centers, indicates that investors are increasingly confident in the long-term potential of India’s real estate sector. This optimism positions India as a strategic market for real estate investments”.
Leave a comment