India Market Monitor Q1 2025

The first quarter of CY 2025 (January to March) witnessed a continuation of the positive trajectory observed in India's real estate market. The following key trends observed during the quarter highlight the overall sector's fundamental resilience and growth potential.

- Office: India’s office sector demonstrated continued resilience in Q1 2025, with steady absorption observed across key markets. Office leasing activity reached ~18 million sq. ft., while supply of ~9.7 million sq. ft. became operational during the quarter. Space take-up by global capability centres (GCCs) played a pivotal role in strengthening office absorption across cities.

- Industrial and Logistics: The I&L real estate sector witnessed strong leasing activity during Q1 2025, registering a substantial ~40% Y-o-Y growth, driven primarily by robust demand from third-party logistics (3PL) and e-commerce companies. In response to the positive market sentiment, supply addition witnessed a remarkable ~57% Y-o-Y increase as institutional investor-backed developers expanded their footprint.

- Retail: A significant upswing was witnessed in India’s retail supply addition as ~2.2 million sq. ft. became operational during the quarter. The fashion and apparel category continued to dominate the leasing activity, followed by homeware and department stores.

- Residential: India’s residential market witnessed an equilibrium between new launches and sales in Q1 2025; approximately 65,000 units were launched, mirroring the volume of sales. Developers showcased a keen understanding of demand dynamics, effectively keeping unsold inventory and overhang well under control.

- Investments: Capital deployment remained strong at USD 2.9 billion in Q1 2025, driven by sustained momentum in land / development sites and investments into built-up assets. Investment inflows were primarily fuelled by developer activity and significant interest from REIT and institutional investors during the quarter.

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