I. The 2024 Wrapped

Indian real estate witnessed transformative growth and challenges in 2024. With the residential market achieving its highest sales in a decade and commercial leasing skyrocketing in key cities, the industry has truly experienced a landmark year.

This blog highlights the 10 defining milestones and trends that shaped the industry in 2024. From residential booms to regulatory changes, we dive deep into how these developments have influenced the industry.

II. Trends Shaping the Market

• Residential market surge

  The residential sector recorded unprecedented growth in 2024, driven by urbanization, evolving lifestyle preferences, and increased demand for premium housing. Key metros like Mumbai, Delhi-NCR, Hyderabad, and Bengaluru saw exceptional property sales growth. Statistics reveal a staggering 15% year-over-year increase, marking the highest sales figures in ten years. Buyers focused on modern amenities, energy-efficient designs, and smart homes, highlighting a shift toward sustainable and luxury living.

• Commercial Real Estate Boom

  Commercial real estate experienced a significant upswing, with leasing activity reaching all-time highs. Cities such as Bengaluru and Hyderabad led the charge, supported by IT/ITeS and startup ecosystems. Office space leasing grew by 12%, reflecting robust corporate expansion and increased demand for co-working spaces. This trend emphasizes India's global business hub status.

• Retail sector expansion

  Retail leasing saw a remarkable recovery post-pandemic, particularly in Tier 1 cities like Delhi-NCR, Bengaluru, Hyderabad, and Chennai. Malls and high-street retail formats flourished, catering to consumer demand. Emerging trends such as mixed-use developments and experiential retail spaces gained traction, further boosting investor confidence in this sector.

• Industrial and logistics growth

  Industrial and logistics sectors expanded significantly, driven by e-commerce growth and evolving supply chain needs. Warehousing absorption reached new heights, with 3PL (third-party logistics) providers accounting for a major share. Smaller warehouse deals in Tier 2 and Tier 3 cities also contributed, underlining the sector’s penetration beyond metro areas. This trend cements India’s role as a critical player in the global supply chain.

• Increased FDI in Real Estate

  Foreign Direct Investment (FDI) into Indian real estate has reached record levels, particularly in land and development sites. Major deals from global investors signalled growing international confidence in India’s real estate market. FDI inflows boosted liquidity but also encouraged innovation in property development and sustainability practices.

  In addition to market trends, several key regulatory decisions also shaped the real estate landscape in 2024."

III. Key Decisions and Their Impact

• Establishment of HYDRAA

  In 2024, the government introduced HYDRAA (Hydrological Disaster Risk Assessment Authority), aimed at safeguarding real estate assets against environmental risks. This regulatory body provided robust frameworks for disaster management and asset protection, ensuring a more resilient infrastructure landscape.

Impact of HYDRAA

HYDRAA's establishment had several impacts:

• Stricter Enforcement: Illegal encroachments and non-compliant developments face heightened scrutiny, leading to market corrections.

• Market Uncertainty: Buyers and investors initially were cautious, anticipating potential policy adjustments.

• Positive Impact on Compliant Developments: Properties adhering to environmental norms saw increased valuations, enhancing investor and buyer confidence.

RERA and the Benami Act Amendments

Amendments to the Real Estate Regulatory Authority (RERA) Act and the Benami Transactions (Prohibition) Act aimed to boost transparency and accountability. These changes streamlined property registrations and curbed illicit transactions, promoting ethical practices in the industry. Developers welcomed these measures, as they fostered a more organized market environment.

Introduction of GST on Real Estate

The implementation of Goods and Services Tax (GST) on real estate transactions brought both challenges and opportunities. While the taxation structure initially led to price recalibrations, it ultimately simplified property-related transactions, benefiting buyers and sellers alike. Developers adjusted pricing strategies to remain competitive, ensuring a smooth transition for stakeholders.

IV. Wrapping Up 2024

The year 2024 was pivotal for the Indian real estate market, with transformative trends and impactful decisions shaping its course. Residential and commercial sectors flourished, while industrial and retail spaces witnessed robust growth. Regulatory reforms and initiatives like HYDRAA underscore industry resilience and adaptability.

As we move forward, these milestones pave the way for a dynamic and sustainable future in Indian real estate. Market trajectory promises exciting opportunities for developers, investors, and buyers. According to you what impacted more in 2024? Share your thoughts in the comments below!