New Delhi, Dec 17 (IANS) : After witnessing a bumper growth in 2024 across residential, office and industrial domains, 2025 is likely to be a year of consolidation and continued innovation for the Indian real estate sector, a report showed on Tuesday. While residential and office markets can potentially
stabilize after consecutive peaks, industrial and warehousing demand can witness heightened traction, fuelled by rising manufacturing output and a thriving logistics industry, according to a Colliers India report. In 2025, rapid urbanization, key infrastructure project completion, and industrial corridor development will create new growth opportunities, particularly in tier 2 and 3 cities. In 2024, annual
gross leasing across the top six cities reached 47 million square feet by the third quarter of the ongoing
year, reflecting a 23 per cent year-on-year increase.
On the residential front, supported by stable interest rates, launches and sales across major cities
of the country are likely to end on a strong note this year. Average housing prices across the
top eight cities have already surged 11 percent annually in 2024.
The first nine months of 2024 saw a 17 percent annual growth in industrial and warehousing demand, registering 20.2 million square feet of leasing across the top five cities. Almost half of the leasing activity is expected to come from Delhi-NCR and Chennai. Institutional inflows in Indian real estate will continue to remain healthy in 2024, indicating sustained investor confidence. Of the $4.7 billion real estate investments during the first nine months of 2024, office and industrial and warehousing segments together accounted for over 70 percent of the of the share.
Buoyed by domestic growth prospects and long-term returns, institutional investments are likely to be around $5-6 billionby the end of 2024.