Unveiling the Vibrancy of India's Market: A CBRE Report Analysis - Bangalore's exceptional performance

In the latest revelation from the CBRE market monitor report, the Indian economy has showcased a robust performance, surpassing expectations and setting a promising trajectory for the upcoming fiscal years. In Q4 2024, India's GDP growth surged to an impressive 8.4%, prompting several agencies to reevaluate their growth forecasts for the financial years 2023-24 and 2024-25. Forecasts now range between 6.4% to 7%, indicating a bullish sentiment across the market.

Complementing this growth narrative, retail inflation hovers around 4.85%, a figure well within the RBI's target for the past seven months. This alignment suggests a conducive environment for sustained economic expansion, with further moderation in inflation anticipated.

Furthermore, the repo rate remains stable at 6.5%, maintaining equilibrium in the economy's cash flow dynamics. This stability, strengthened by the absence of rate adjustments since February 2023, bodes well for investors and businesses alike, fostering an environment of predictability and confidence.

In the realm of investments, Q1 2024 witnessed a significant influx of Equity Capital amounting to USD 1.4 billion, marking notable quarter-on-quarter and year-on-year growth rates of 6% and 18%, respectively. The investment landscape saw prominent allocations towards Site/Land and office spaces, signalling a buoyant sentiment in real estate and commercial developments.

Notably, regions such as Delhi NCR, Pune, and Bangalore emerged as focal points, collectively driving 80% of the investment influx. Bangalore, in particular, has witnessed a surge in real estate demand, fueled by the burgeoning technology sector and a heightened focus on sustainability initiatives such as green certifications.

On the commercial front, leasing activities surged, surpassing 14 million square feet, while supply levels reached approximately 10 million square feet. Despite a decline in supply and absorption rates, leasing activities remained robust for few cities, with Bangalore leading the charge with a remarkable 60% share for the GCC leasing. GCCs contribute to 38% leasing of large spaces in Q1 2024 

The technology sector and flexible office spaces like cowork spaces emerged as primary consumers of office space, underscoring the evolving dynamics of workspace preferences. Notably, green certification gained prominence, with Bangalore, Hyderabad, and NCR leading the charge in sustainable development practices.

In conclusion, the CBRE report paints a picture of resilience and growth in the Indian market, with Bangalore emerging as a beacon of opportunity and innovation. As we stand on the cusp of transformative growth, now is the time to explore and capitalize on the myriad opportunities that lie ahead. Connect with me to embark on this exciting journey towards prosperity and success.

Sources: India Market Monitor Q1 2024 – Residential | CBRE India, India Office Figures - Q1 2024 | CBRE India

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