CBRE – India Market Monitor, 3Q 2023

The Indian economy has continued to grow in the first nine months of 2023, driven by domestic consumption and a diversified exports basket. However, inflation may cause key policy rates to remain elevated for longer than expected. Despite these challenges, the real estate sector has shown resilience in various segments. In the office market, leasing activity has grown on a quarterly and yearly basis, indicating steady occupier confidence and suggesting a positive outlook for the rest of 2023. The industrial and logistics sector has experienced a slight decline in leasing activity on a quarterly basis. However, the addition of high-quality supply and strong festive demand are expected to drive overall absorption to surpass expectations, reaching 36-38 million sq. ft. in 2023. The retail sector has witnessed robust growth in leasing and supply addition in the third quarter of 2023. With incoming supply and the ongoing festive season, the overall space take-up is expected to strengthen further. In the residential segment, sales have exceeded 230,000 units in the first nine months of 2023, marking a 5% year-on-year growth. Demand has led developers to launch over 220,000 new housing units during the same period, representing a marginal growth of 1%. Sales and new launches are expected to reach a decade-high in 2023, potentially surpassing the 300,000-unit mark. Investment activity in the real estate sector has regained momentum, especially in land activity. Opportunistic and core/core plus investments have dominated capital flows in the market. For a more detailed analysis of the real estate landscape in India, please download the PDF.