What major investment trends are expected in the second half of 2024 and beyond?

Heading into the second half of 2024 (H2 2024) and beyond, Indian real estate is poised to embrace several new trends fueled by economic recovery, tech adoption, and shifting consumer preferences.

Key Investment Trends:

• Continued Office Space Demand: IT/ITES, startups, and BFSI players will drive Grade A leasing in metro corridors, maintaining robust demand for premium commercial properties.
• Flexible work models might increase the popularity of co-working and hybrid office layouts.

• Strength in Warehousing & Logistics: E-commerce will keep fueling logistics parks, requiring well-located, tech-enabled facilities to meet fast delivery requirements.
• Investors favor long-term lease commitments with stable corporate tenants.

• Residential Evolution: Demand for bigger homes, integrated townships, and affordable projects remains high, enhanced by government incentives and favorable interest rates.
• Digital sales platforms will continue to simplify the homebuying journey, expanding market reach.

• Rise of Alternative Assets: Data centers, senior living, student housing, and co-living will gain traction, representing higher-yield segments with evolving consumer needs.
• Institutional investors see these assets as a way to diversify beyond traditional commercial and residential properties.

• Greater Emphasis on ESG: Green building certifications, energy-efficient designs, and sustainable practices will become standard, reflecting global ESG mandates.
• Occupiers and investors increasingly demand eco-friendly spaces to align with carbon reduction goals.

• Regulatory & Financial Innovation: Ongoing improvements in RERA, IBC (Insolvency and Bankruptcy Code), and digital land records will enhance transparency.
• New REIT models, PropTech solutions, and fintech integrations could reshape lending and investment strategies.

Overall, H2 2024 and the subsequent years promise sustained capital inflows, diversified asset development, and technological modernization, solidifying India’s real estate market as a vibrant growth hub for both domestic and international investors.