The Indian real estate sector received a record equity capital inflow of Rs 14.25 billion last year, higher by 25 per cent annually, as developers and institutional investors remained bullish on growth potential, according to CBRE.
Office redevelopment is emerging as a key growth frontier for developers as India's commercial real estate market shifts towards quality, sustainability, and capital efficiency. With land parcels scarce in central business districts (CBDs) and demand for Grade A offices remaining strong, developers and investors are increasingly turning to ageing office stock in prime locations to unlock value.
'While the concept was introduced globally over four decades ago, branded residences have taken off now in India.'
Indian real estate sector saw more land deals in 2024 at over 2,200 acres as developers were looking to expand the business, according to CBRE. Real estate consultant CBRE data showed that land deals of more than 2,200 acres last year as against about 1,900 acres in the preceding year. Out of the total land transactions in 2024, around 2,000 acres were located in the eight major cities -- Delhi-NCR, Bengaluru, Mumbai, Chennai, Pune, Hyderabad, Kolkata and Ahmedabad.
Anshuman Magazine of CBRE discusses effective leadership, millenials, Trump's America and his core business -- the real estate market -- with Nivedita Mookerji.
Among the cities that have fully implemented their projects are Agra, Varanasi, Madurai, Coimbatore, Udaipur, Pune, Surat, and Vadodara
With the rise of ultra-luxury housing in India comes ultra-customised marketing. Developers selling high-end homes, priced above Rs 20 crore, are moving away from traditional marketing for these homes to newer methods, such as painstaking profiling of customers before showing them the property, augmented reality for visualisation of interior decor, virtual tours, and closed-door international shows. There is also marketing through online ads, social media influencers, and exclusive memberships.
'The Indian retail landscape is poised for a significant shift with the anticipated arrival of several prominent international luxury fashion brands in 2024.'
India's real estate market is poised for growth across categories - residential, commercial, and rental. Currently valued at Rs 24 trillion, or about $300 billion, it is projected to surge to $1.3 trillion by 2034, and then grow further to $5.17 trillion by 2047, indicates a report by the Confederation of Real Estate Developers Associations of India (Credai).
While tenants can't escape the impact of rising rentals entirely, they can adopt a few strategies to reduce the impact.
This shift is driven by a pursuit of a superior lifestyle and an innate desire to be grounded in an owned plot of land. Villas, situated within gated housing societies, have gained popularity as a property type, witnessing strong traction due to elevated aspirations and the need for more living space.
The demand for flexible office space is emerging as India's top short-term portfolio strategy, as 47 per cent of companies want to increase its use over the next 12 months, according to a survey by property consultant CBRE. Flexible office space is a workspace designed to provide employees with a variety of different places and ways to work. These spaces can be easily modified to fit the needs of any new project or role.
The Indian office real estate market, which had recovered significantly in early 2022, began to slow down in the latter half due to macroeconomic problems in the developed world. Rental yields are likely to be stable at best in FY24.
End users should take the plunge despite higher home loan rates as these tend to be cyclical.
India will add up to 40 million sq ft of office space this year, which will be higher than many other advanced countries, but lesser than China.
However, Icra Rating Principal Economist Aditi Nayar feels that the numbers are a bit too optimistic and need real heavy-lifting by the Centre and the states. "The survey forecasts on real and nominal GDP will require a substantial push from Central and state spending as private sector capacity expansion is anticipated to be intermittent, and sector-specific in the next couple of quarters," she said. Nayar added that private consumption is likely to chart a differentiated recovery across income and age groups. Based on the comments made in the Survey, she expects the Union Budget to incorporate a growth in gross tax revenue of 15-16 per cent.
Real Estate consultant C B Richard Ellis on Wednesday hailed the decision to open up retail sector for foreign direct investment saying this would boost confidence of international investors in India.
Real estate major CB Richard Ellis has been named the 'Top commercial real estate brand' by the internationally recognised consulting firm Lipsey company.
The prospects of returns on investment in residential properties and office rentals is brighter than that in stock markets due to low risk factor, a real estate expert said.
The total demand has remained subdued mainly due to high interest rates and property prices.
Housing sales fell by about 30 per cent last year in seven major cities due to costlier flats and higher interest rate, says property consultant CBRE.
Farmers too will get better deals
American brands top the domestic retail space with 30 per cent share, especially in the food & beverages sapce, while the Italian and British labels dominate the luxury segment.
Mumbai's Bandra Kurla Complex (BKC), which houses the offices of some of the biggest banks in the country, however, slipped to 26th position from the 16th position.
Another major development is REITs coming closer to reality
A study conducted by CBRS reveals there are abundant homes lying vacant in urban India.
The residential markets across NCR observed subdued activity level in the first half of 2013 as compared to the previous review period, it said.
CREDAI Chairman Lalit Jain said a long term status quo on interest rates would not help prospective home buyers.
SBI, the country's largest lender, first announced a rate cut of 0.25 per cent in its home loan rates on Thursday, forcing HDFC, the second biggest home loan financier, to respond.
Rentals of retail space in these seven cities showed a mixed trend, according to CBRE's 'India Retail Market View' report for H1 2014 on the status of organized retail real estate spaces in the country's leading cities.
Experts are looking at a timeframe of anything between 12 and 18 months from the time of the new government for concrete signs of revival.
Addressing a real estate conference organised by the RICS, a global body to set standards for realty sector, Krishna said the Centre is revisiting rental law to boost housing supply.
With Sebi clearing the final guidelines for creation of Real Estate Investment Trusts (REITs), assets worth around $12 billion are likely to be listed in the next 2-3 years.
The realty market has been reeling under declining sales, coupled with higher inventory, for the past two years.
Mumbai's Bandra Kurla Complex moved down from 18th to 19th position.
Budget fails to cheer realty players.
A revival in the sector is still 12-18 months away: Experts
Real estate biggies unhappy with status quo on RBI rate cut.
Delhi's Connaught Place is the 6th most expensive location in the world.
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