Land deal volume in India surged by 65 per cent year-on-year (YoY), reaching about 1,700 acres between January and September 2024, according to a report by real estate consulting firm CBRE South Asia Private Limited.
Credit: Reuters photo
Bengaluru: Land deal volume in India surged by 65 per cent year-on-year (YoY), reaching about 1,700 acres between January and September 2024, according to a report by real estate consulting firm CBRE South Asia Private Limited.
During this period, over 100 land deals were closed, up from over 60 deals during the same period last year.
The share of land deals by volume was dominated by the top six cities (Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune).
Delhi-NCR led land deal activity with approximately 32% share. Within the region, Gurgaon accounted for the highest land deal share at around 65%.
Bengaluru followed next, accounting for 22% of the pan-India deal. Together with Mumbai and Chennai, these four cities have a combined share of 75% of the overall land deal volumes in this period.
Land purchases were spread across diverse segments. Residential assets took the lead, accounting for 61 per cent of the deal volume spanning over 870 acres, translating into a 50 per cent increase when compared to the same period in 2023.
The industrial and logistics segment followed, making up 13 per cent of the total number of land deals spread over 525 acres, reflecting a 5 per cent YoY increase in the area acquired. Within this segment, warehousing leasing activity is expected to increase in the upcoming quarters led by Delhi-NCR, Bengaluru, and Chennai.
Data centres were seen as an emerging segment, accounting for a 6 per cent share in overall deal volume spread over more than 140 acres.
The office segment also saw growth, recording 8 per cent of the total number of land transactions spanning over 20 acres (up 3 per cent YoY).
Retail and hospital assets represented 2 per cent and 5 per cent of the deals in this period respectively. Retail covered over 20 acres and hospitals covered more than 11 acres, pointing to diversification in asset preferences compared to last year, where retail stood at 3 per cent and hospitals at 2 per cent.