- Residential
- December 11, 2024
In Q3 2024, India's real estate sector exceeded expectations, experiencing a significant investment surge. Increased demand for residential and commercial properties, coupled with favorable government policies and economic recovery, fueled growth. This trend reflects the sector's resilience and emerging potential as a key driver of India's economy. Moreover, the capital inflows into India’s real estate market reached a new peak in 9M 2024, following a resurgence in investments in Q2 2024. Sustained capital inflows are expected in both traditional and emerging sectors in the upcoming quarters, while institutional and collective vehicle investors, along with developers, are expected to drive the overall capital flows. According to the latest CBRE India Market Monitor Q3 2024, the overall real estate investment in India is projected to reach USD 10–11 billion by the end of 2024.
Furthermore, the third quarter of 2024 has proven to be a pivotal period for the Delhi-NCR real estate market, which has seen a remarkable resurgence in both residential and commercial sectors. This growth is not just a rebound but a testament to the region’s strong fundamentals, attracting significant investment inflows and outperforming expectations. Particularly in Gurgaon, one of the region’s key commercial hubs, the real estate market has emerged as a standout performer, driven by renewed investor confidence, a booming office leasing segment, and continued demand in the residential space.
Gurgaon: The Epicenter of Commercial Growth
As per the Cushman & Wakefield report, office space gross leasing value in Q3 2024 reached 24.8 million square feet, a 66% jump on an annual basis and a 14% expansion over the previous quarter. Moreover, Delhi-NCR accounted for 15% of the GLV. Gurgaon's key commercial hubs have seen strong leasing activity, with low vacancy rates in prime office buildings. Investors are actively acquiring properties, making Gurgaon one of India's most attractive commercial markets.
Resilient Residential Demand in Gurgaon
While Gurgaon’s commercial real estate market performs exceptionally well, the residential sector is not far behind. The city’s residential market has shown robust growth, with both premium segments benefiting from a consistent influx of buyers and investors. In Q2 2024, Delhi NCR experienced the highest quarterly price increase at 16%. Moreover, the average housing prices for 3-4 BHK configurations have risen to 30% year-on-year as per the CBRE report.
Infrastructure Development: A Catalyst for Growth
One of the primary factors contributing to Gurgaon’s success in Q3 2024 is its robust infrastructure development. The projects along NH 48 benefit from great connectivity. They provide direct access to the 1,350 km Delhi-Mumbai Expressway and the 27 km Dwarka Expressway, featuring a 16-lane road network that connects Delhi and Gurgaon. Additionally, the location benefits from its proximity to the HUDA metro station and upcoming metro expansions, which include 27 new stations under development. Its accessibility from all four sides of the city, along with its surroundings of upscale New Gurgaon, Old Gurgaon, Delhi, and Manesar, enhances its appeal. Moreover, the area boasts world-class infrastructure, featuring premium educational and medical institutions, as well as seamless connectivity through roads, elevated bypasses, and metro systems, making it a prime investment hub.
Investment Outlook for Gurgaon
Looking ahead, the outlook for Gurgaon’s real estate market remains highly positive, with strong demand in both commercial and residential sectors, driven by domestic and international investments. The city’s focus on sustainability and green buildings aligns with the growing demand for eco-friendly spaces, catering to the increasing demand for sustainable and environmentally-conscious living and working spaces. With strong performance in Q3 2024, particularly in commercial leasing and infrastructure development, Gurgaon continues to evolve and mature and is expected to outpace expectations in the coming quarters. This growth will likely attract even more investment and further drive the expansion of Delhi-NCR’s real estate sector.
