India is set to achieve a projected GDP growth rate of 7.2% for FY 2025, reaffirming its status as the fastest-growing large economy. This growth is driving key changes in logistics, warehousing, and real estate, marking a significant transformation in the nation’s economic landscape.
India’s economic growth: A catalyst for change
India’s logistics sector showcases its economic momentum. In Q3 2024, the warehousing market grew by 20% year-on-year, with transaction volumes reaching 14.65 million sq. ft. Grade A spaces accounted for 66%, with manufacturing leading the way (38%), followed by retail and e-commerce (35% and 34% YoY growth, respectively).
The real estate market is also on an upward trajectory. Residential property prices are expected to climb by 6.5% in 2025, driven by demand in premium and luxury segments. Urbanization and infrastructure initiatives, such as PMAY, are fueling this growth in Tier II cities like Indore, Kochi, and Jaipur.
Global Capability Centers drive South India’s growth
Global Capability Centers (GCCs) are reshaping South India’s real estate market. Bengaluru, Hyderabad, and Chennai have witnessed increased demand for both commercial and residential spaces. Emerging hubs like Coimbatore and Visakhapatnam are also experiencing significant traction.
These centers, backed by multinational corporations, are fostering urban infrastructure development. They are creating dynamic spaces for living, working, and recreation.
Sustainability and innovation in Real Estate
Sustainability and smart city initiatives are playing a pivotal role in redefining India’s real estate sector. Green building practices and PropTech solutions are reshaping the industry.
Private equity investments crossed $1.5 billion in the first nine months of 2024, and the sector is projected to reach $51.54 trillion by 2029. This highlights the immense growth potential in the coming years.
