Real Estate:
Indian retail space
We have seen an increase in the leasing activity of the Indian retail space in prime locations in India recently, mainly across the country’s top seven cities. Demand has been particularly strong in fashion and apparel and direct-to-consumer brands are also holding strong, as physical retail stores gain popularity amongst brands seeking enhanced consumer engagement in person.
- Leasing Activity: The Indian retail market’s leasing activity is projected to exceed 6.5 to 7 million square feet by the end of 2024, up from 5.3 million square feet in 2023.
- Dominant Sectors: Fashion, luxury retail, and D2C brands are leading the leasing landscape.
- Gross Leasing Activity: Despite limited new retail space additions, the robust gross leasing activity in the top seven cities indicates a strong appetite for prime retail locations.
- Top Cities: Bengaluru, Delhi NCR, and Mumbai account for 59% of the total leasing activity.
Land deals
There has been a surge in land deals (i.e. land bought or sold) across India and 100 land deals were closed in the first nine months of 2024, up from 60 over the same time in 2023. Residential properties lead the way, making up 61% of the total deal volume and Delhi emerged as the top contributor, capturing approximately 32% of all land deals during this time.
- Surge in Land Deals: From January to September 2024, India's real estate market saw a significant 65% increase in land transactions, totalling over 1,700 acres.
- Major Cities Leading: The surge was led by major cities like Delhi-NCR, Mumbai, and Bengaluru.
- Investor Confidence: The increased activity reflects strong investor confidence from major developers in tier 1 cities and institutional investors in tier 2 cities and favourable economic conditions.
Aviation:
India’s aviation sector is set to expand rapidly over the next 20 years, requiring up to 4,000 more aircraft and 200 new airports.
- Record Domestic Air Traffic: India’s domestic air traffic hit a record high with 456,082 passengers flying on a single day, reflecting a post-pandemic travel boom.
- New Mandate for Bomb Threats: The Ministry of Civil Aviation has issued a new mandate to tackle the rising number of bomb threats against flights.
- India as an Aviation Hub: The Civil Aviation Minister highlighted plans for India to emerge as a leading aviation hub by the end of the decade.
- Aircraft Grounding Crisis: IndiGo’s CEO announced that the airline is recovering from its aircraft-grounding issues, with the number of grounded planes expected to drop below 50 by March 2025.
- SpiceJet’s Financial Moves: SpiceJet cleared 3.1 billion rupees of pending Tax Deducted at Source dues and plans to add 10 new aircraft by November.
Renewables:
India emerges as a global leader in renewable energy. The points below highlight the significant strides and future plans in India’s renewable energy sector, reflecting a strong commitment to sustainable growth and innovation.
- 500 GW Renewable Energy Goal: India aims to achieve 500 GW of renewable energy capacity by 2030, with substantial contributions from solar and wind energy.
- Investment Needs: India requires approximately 32 trillion rupees investment in renewable energy by 2030 to achieve its energy transition goals.
- India’s Renewable Energy Investments: India has seen record levels of investment in renewable energy, with significant growth in solar and wind power.
- Climate Investment Funds: India seeks to borrow $70 million from the Climate Investment Funds for energy storage systems and grid strengthening.
- Global Funds Interest: Global funds are eyeing India as a stable investment destination amid financial volatility.
- India-Germany Green Hydrogen Roadmap: India and Germany have launched a roadmap for the research and development of green hydrogen.
DWF is a leading legal adviser to Indian and India-focussed companies, financial institutions and high net worth individuals and families. Our India Group, consisting of 102 members from 9 countries, 16 practice areas and 9 sector groups, is one of the largest India groups of any international law firm. With decades of extensive expertise in guiding Indian clients in respect of outbound legal work, our team of experts and specialists empower both India-focused and India-based clients to achieve their strategic objectives. While we do not practice Indian law as per the country’s current regulatory framework, we have strong relationships with leading Indian law firms with whom we collaborate to provide a seamless service to our clients. If you have queries on any of the issues covered in this article, please contact one of our experts.
We would like to thank Bhavisha Parmar and Andrea Tarazi for their contribution to this article.
