Poised for CONTINUED GROWTH
The western region of India has established itself as a dynamic real estate market characterized by consistent demand and supply across both residential and commercial sectors. This growth momentum is primarily driven by rapid urbanization, rising disposable incomes, and supportive government initiatives. Moreover, ongoing infrastructure developments are significantly enhancing connectivity, making the region more attractive to investors, occupiers, and homebuyers.
Residential market trends
Within the residential sector, the luxury housing segment has experienced a remarkable surge in recent years. Key cities like Mumbai, Ahmedabad and Pune have garnered significant interest from high-net-worth individuals (HNWIs) and non-resident Indians (NRIs). This trend is fuelled by factors such as economic growth, rising incomes, and a desire for premium lifestyle amenities.
Commercial real estate
The commercial real estate sector has demonstrated sustained promise, particularly in the office market. The region has witnessed a consistent demand for office space across various sectors, including BFSI, technology, and research, consulting, and analytics. Mumbai has experienced robust office space absorption with leasing activity. GIFT City is an opportunity to drive reforms towards providing a thriving financial ecosystem critical to supporting and expanding businesses in the western India.
Infrastructure developments
Several key infrastructure projects are poised to impact the real estate landscape significantly. The Mumbai Trans Harbour Link (MTHL), Navi Mumbai International Airport (NMIA), and multiple metro projects are expected to unlock new markets, establish satellite cities, and stimulate development in peripheral areas. In Pune, infrastructure developments are also driving growth in the residential market, particularly in areas like Hinjewadi Phase III, Waghole, Wakad, and Pimpri Chinchwad. The Mumbai- Ahmedabad bullet train route between the two cities is likely to spur growth in the region. Sabarmati, Ahmedabad, Anand, Vadodara, Bharuch, Surat, Bilimora, Vapi, Boisar, Virar, and Thane are likely to see enhanced traffic and trade moments. The proposed greenfield Pune International Airport at Purandar will also upgrade and improve the connectivity to the city.
Emerging trends
The trend towards co-working and flexible office spaces is gaining momentum, catering to start-ups, freelancers, and larger corporations adopting hybrid work models. Even tier-2 cities are witnessing a rise in flexible office spaces, with IT and technology companies leading the trend. Cities like Ahmedabad, Rajkot, and Vadodara are transitioning towards modern developments to cater to both residential and commercial needs as more companies establish global capability centres (GCCs) in these areas.
Outlook
The Indian real estate sector in the western region is poised for continued growth, fuelled by positive market sentiment, economic expansion, urbanization, and evolving lifestyles. Consumer enthusiasm for homeownership remains strong, with residential sales consistently breaking records. The market presents promising opportunities, including increased investment in sustainable infrastructure. The luxury real estate segment is expected to maintain its upward trajectory, driven by rising household incomes and consumer spending. Developers are responding to favourable market conditions by ramping up their activities and planning to introduce new units. Sustainability has emerged as a crucial factor in real estate development, with a growing emphasis on eco-friendly and energy-efficient homes.
Anshuman Magazine
Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE
