Over 100 land deals spanning approximately 1,700 acres were closed across six major cities in India between January-September 2024 , according a report released by property consultancy CBRE on October 22.
The land deal volume jumped 65% year-on-year compared to the 60-plus deals carried out during the same period last year, the report said.
As per the report, Delhi-NCR led land deal activity with an approximately 32% share, with Gurgaon accounting for the highest land deal share at around 65% and Noida/Greater Noida at about 20%. This represents an approximately 65% annual increase in the number of deals compared to the same period last year.
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Delhi-NCR was followed by Bengaluru, Mumbai and Chennai with around 22%, 12% and 10% shares, respectively. These four cities accounted for a combined share of approximately 75% of the overall land deal volumes between January-September 2024.
โThe significant increase in land deals this year highlights the strong confidence of both domestic and international investors in India’s real estate potential. The robust demand across various markets, combined with favourable economic conditions, have created an environment ripe for growth. We expect this momentum to continue, driven by strategic investments that underscore the stability and long-term growth opportunities of the market,โ said Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.
Asset-wise land deals
The report highlighted that land activity during January-September 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 the first nine months of 2023.
The industrial and logistics segment followed, making up 13% of the total number of land deals spread over 525 acres, a 5% increase in the area acquired compared to January-September 2023.
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Meanwhile, data centers emerged as a significant asset class in the nine-month period, accounting for a 6% share in overall deal volume spread over more than 140 acres, the report noted.
The office segment also saw growth, recording 8% of the total number 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 during the period under review, 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).
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Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said, โThe 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 Indiaโs real estate sector. This optimism positions India as a strategic market for real estate investmentsโ.
