Inputs by: Priyesh Chheda, Founder, Arbour Investments
According to Priyesh Chheda, Founder, Arbour Investments, India’s economic momentum continues to astound, with a projected GDP growth of 7.2% for FY 2025, reaffirming its status as the fastest-growing large economy in the world. This robust expansion is driving transformative trends across industries, particularly in logistics, warehousing, and real estate, fueled by innovation, infrastructure, and investment.
The warehousing market, a cornerstone of India’s logistics sector, recorded 20% year-on-year growth in Q3 2024, with transaction volumes reaching 14.65 million sq. ft. Grade A spaces dominate with a 66% share, driven by manufacturing (38%) and surging retail and e-commerce demand (35% and 34% YoY growth, respectively). Meanwhile, residential property prices are expected to rise by 6.5% in 2025, led by premium and luxury segments. Tier II cities like Indore, Kochi, and Jaipur are poised for growth, supported by urbanization, infrastructure upgrades, and government initiatives such as PMAY.
Global Capability Centers (GCCs) are reshaping South India’s real estate landscape, fueling demand for commercial and residential spaces in cities like Bengaluru, Hyderabad, and Chennai. Emerging hubs like Coimbatore and Visakhapatnam are also gaining traction. This expansion, driven by tech giants and multinational corporations, is catalyzing urban infrastructure development, creating dynamic live-work-play environments.
Sustainability and smart city initiatives are increasingly redefining real estate through green building practices and PropTech solutions. With private equity investments crossing $1.5 billion in the first nine months of 2024 and the real estate market projected to reach $51.54 trillion by 2029, India’s evolving urban landscapes offer unparalleled opportunities for innovation and growth.
