Number of land deals up 65 pc in Jan-Sep; over 100 transactions struck totalling 1,700 acres: CBRE

New Delhi, Oct 22 (PTI) Indian real estate sector has witnessed a sharp rise in land transactions in January-September this year, with more than 100 land deals getting struck totalling around 1,700 acres, according to CBRE.

Real estate consultant CBRE report mentioned that there were about 60 land deals in the same period of last calendar year, aggregating to around 1,200 acres.

The consultant said that land deal volume in India surged 65 per cent year-on-year (Y-o-Y) in January-September 2024, reaching around 1,700 acres. The land deals were dominated by 6 major Indian cities (Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune).

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 and office, and emerging categories such as data centres, this indicates that investors are increasingly confident in the long-term potential of India’s real estate sector," he said.

This optimism positions India as a strategic market for real estate investments, Magazine added.

During the first nine months of this year, Delhi-NCR led land deal activity with approximately 32 per cent share, followed by Bengaluru, Mumbai and Chennai with 22 per cent, 12 per cent and 10 per cent share, respectively.

For the January-September period, land activity was spread across a diverse range of segments, with residential assets taking the lead, accounting for 61 per cent of the deal volume spanning over 870 acres.

The Industrial & Logistics (I&L) segment followed, making up 13 per cent of the total number of land deals spread over 525 acres.

Data centres emerged as a significant asset class in the January-September period, 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. Retail and hospital assets each represented 2 per cent and 5 per cent of the deals in January-September 2024, with retail covering over 20 acres and hospitals more than 11 acres.

Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, said, the 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," Kumar added. PTI MJH DR