Poised for a robust growth
Anshuman Magazine,
Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE
India’s Northern region is a dynamic real estate landscape, experiencing a post-pandemic resurgence fuelled by rising demand for both residential and commercial properties. Key cities like Delhi-NCR, Jaipur, Lucknow, and Chandigarh lead the charge, driven by improved connectivity, infrastructure development, and an expanding job market.
Healthy leasing activity across retail, office, residential, and industrial and logistics sectors paints a positive picture. Delhi-NCR stands out, boasting the second-highest office space absorption rate (17%) and significant industrial and logistics activity (1.5 million sq. ft. absorption in Q1 2024). Moreover, retail continues to thrive, with Delhi-NCR leading the pack (0.2 million sq. ft. absorption in Q1 2024) and tier-II cities like Jaipur, Lucknow, and Chandigarh developing a healthy mix of high streets and malls. The luxury segment shines brightly, with Delhi-NCR housing nearly 80% of India's international luxury brands. This trend aligns with the rise of Gurgaon as a prominent luxury residential market, attracting discerning buyers seeking gated communities with average ticket sizes ranging from Rs 10 to 60+ crore.
Beyond metros, a compelling narrative unfolds. The increasing adoption of remote work models presents opportunities for global and domestic corporations. Companies in Delhi-NCR are expanding to tier-II cities to tap into a skilled workforce facilitated by robust infrastructure like metro extensions and new commercial clusters. Additionally, low land costs and operational expenses in these cities further incentivize such moves. The government's strategic focus on industrial corridors and improved internet access is igniting a surge in demand for industrial and logistics spaces in these regions. This, combined with the growing aspiration for homeownership, is propelling the residential sector forward. With borrowing costs expected to remain stable, the Northern region's overall real estate market is promising and poised for a robust growth trajectory across all asset classes in 2024.
The Northern region's real estate market presents a compelling picture – a blend of established metros flourishing alongside the rise of tier-II cities, all underpinned by strong fundamentals and a supportive business environment. This region is undoubtedly a market to watch in the years to come.
