[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
The Indian real estate market has seen a resurgence, resulting in heightened interest from property developers in acquiring land parcels, with a 65% year-on-year increase in land transaction volumes until September this year. The residential segment has led the demand.In the nine months, more than 1,700 acres of land were transacted in metropolitan and peripheral regions, mentioned CBRE. There were over 100 land deals closed, which is a notable increase from the approximately 60 deals closed during the same period in the previous year. This surge was particularly prominent in major Indian cities such as Delhi-NCR, Mumbai, Chennai, Hyderabad, Bengaluru, and Pune.“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, office and emerging categories such as Data Centers, indicates that investors are increasingly confident in the long-term potential of India’s real estate sector. This optimism positions India as a strategic market for real estate investments”, said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.The year saw builders and corporates like Prestige Group, Birla Estates, Experion Builder, Amazon India, DLF, TVS Emerald, Sattva Group and Puravankara buying land parcels across major cities.”We continuously look to replenish our landbank as and when new projects are launched. In the past nine months, we have acquired around 5.75 million sq ft of saleable area with a potential GDV of over Rs. 10,000 crore across Mumbai, Bengaluru and Goa and will continue replenishing our landbank. We are targeting a land bank of 45 million sq ft over the next two years,” said Abhishek Kapoor, Group CEO, Puravankara Limited.The report further mentioned, between January and September of this year, the Delhi-NCR region emerged as the leader in land deals, capturing approximately 32% of the market share. Within the region, Gurgaon stood out with the highest share of land deals at 65%, closely followed by Noida and Greater Noida at 20%. Additionally, Bengaluru, Mumbai, and Chennai held 22%, 12%, and 10% of the market share respectively. These four cities collectively contributed to 75% of the total land deal volumes in the January to September 2024 period.“We have observed a notable increase in the demand for land acquisition as a fundamental component of our long-term strategic vision.Our focus revolves around acquiring prime locations that proffer enduring value for our homebuyers. Prestige has invested Rs2409 crore for land acquisition in the last nine months. There are enough land chasing. However Prestige is selective in land acquisition to ensure that land with proper title is acquired at the right price to ensure margins are maintained”, said Tariq Ahmed, CEO, West, Prestige GroupDuring the first nine months of the year, land activity was spread across a diverse range of segments with residential assets accounting for 61% of the deal volume. The Industrial & Logistics (I&L) segment followed, making up 13% of the total land deals. Data centers land transactions accounted for 6% while the office segment also saw growth, making up 8% of the total land transactions. Moreover, Retail and Hospital properties each contributed 2% and 5% respectively to the overall deals activity, signaling a diversification in asset preferences compared to the previous year, the report mentioned.“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”, said Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.Experts believe that rising land prices and clear title will encourage some builders to create land banks for future projects and forge partnerships under joint development and joint venture models.
Source link
