Presenting the India Mid-Year Market Outlook 2024-25 report, a comprehensive re-evaluation of our projections made in April 2024 (CBRE 2024 India Market Outlook) on the country’s evolving real estate growth landscape. This analysis evaluates the progress made on those projections during H1 FY2024-25, i.e., between April and September 2024, and recalibrates them for the remaining months of the financial year.Kanpur Investment

- Economy: Inflationary pressures moderated notably, with the average CPI in H1 FY2024-25 (April to September 2024) coming in at 4.57% compared to 5.53% observed in the corresponding period of the previous fiscal year. The surge in September CPI at 5.49% is beyond expectations. However, we still believe that the RBI’s tightening cycle seems to have concluded, and we could see easing in the next couple of months.

- Office: Primarily driven by sustained expansionary space take-up by global capability centres (GCCs) and domestic occupiers, office absorption in the country is likely to remain strong in FY2024-25, expected to touch ~70 million sq. ft. We anticipate a consistent supply of quality office space in H2 FY2024-25, with about 58-60 million sq. ft. of development completions projected for the financial year.

- Retail: While only 0.5 million sq. ft. of fresh retail space was added in H1 FY2024-25 (April to September), space take-up exhibited resilience, with more than 2.5 million sq. ft. absorbed. Despite a realignment in supply timelines, retail demand in India is expected to emerge stronger in the second half of the financial year, with peaking consumer activity anticipated during the festive season.Pune Investment

-Residential: Housing sales from April to September 2024 remained buoyant, with about 140,000 units sold, underpinned by almost 130,000 new launches. Given this sustained performance and the sector's tendency to peak during the festive season, we forecast both sales and new unit launches to reach 250,000-300,000 units this financial year.

- Industrial & Logistics: The I&L leasing activity touched 19 million sqNagpur Investment. ft. in the first half of FY2024-25 (April to September 2024). An uptick in leasing activity is projected in H2 FY2024-25, fostered by a surge in fresh inquiries, the introduction of high-quality supply, and the culmination of pending transactions.Jaipur Stock

- Investments: Due to a resurgence in investment inflows in built-up office assets and a strong acquisition pipeline for land in the residential sector, we anticipate overall equity investments in FY2024-25 to be in the range of USD 10-11 billion.

- Alternate Sectors: During the first quarter of FY2024-25 (April to June), India’s data centre (DC) market witnessed a supply addition of about ~ 30 MW. Flexible space operators accounted for 17-20% of the total office space take-up in H1 FY2024-25. During the same period, life sciences firms were India's fifth-largest contributor to office leasing, while the country’s hospitality sector is expected to remain buoyant, with an additional pipeline of over 7,000 keys expected to enter the market by the end of the year. Additionally, India’s healthcare sector is experiencing robust growth, evidenced by a steady increase in healthcare spending as a percentage of GDP.