NEW Report: Bangalore’s Resi Market
GRI Club India
High-level content and networking, shaping the present and future of the real estate market
With 55,362 units sold and 56,014 new launches in 2024, Bangalore’s residential market is thriving, fueled by infrastructure advancements, a booming tech sector, and rising demand for luxury and premium housing. But is this growth sustainable?
?? Developers in India’s Silicon Valley are innovating to meet challenges - such as rising property prices and regulatory hurdles - by focusing on high-end, future-ready homes and exploring emerging trends, including co-living, student housing, and senior living communities.
GRI Club India’s latest report “Bangalore's Resi Market” draws on round-table discussions with senior developers, investors, and stakeholders, to explore the current opportunities, investment strategies, and key challenges shaping the future of the city’s residential sector.
Investments surge as India’s data centre market faces rising costs
India’s data centre market is poised for transformative growth in 2025, driven by the rapid expansion of artificial intelligence (AI), cloud computing, and data storage solutions.
?? According to Gartner, IT spending in India is projected to rise by 11.1% year-on-year, reaching USD 161.5 billion in 2025. Among all IT segments, data centre systems are expected to achieve the highest growth rate, with investments anticipated to increase by 19.1% to USD 5 billion, nearly doubling the growth rate recorded in the previous year.?
However, this growth is accompanied by rising construction costs. A report by Cushman & Wakefield highlights a 5% increase in data centre construction costs in India in 2024, one of the highest in the APAC region, driven by surging demand from both local enterprises and international players.?
?? Despite these rising costs, India remains a highly attractive destination for data centre investment. Factors such as land availability, reliable power supply, and a skilled and expanding contractor base, combined with competitive entry costs, continue to position the country as a preferred market for global stakeholders eager to capitalise on its booming digital economy.
Adding to the sector’s complexity, supply chain constraints are pushing up costs for critical components, including mechanical cooling systems, electrical equipment, semiconductors, and computing devices.? To address these challenges, companies are adjusting their operations or investing in expanded production capabilities. Developers and landlords, in turn, are passing these increased costs onto tenants through higher lease rates.
?? Even with these challenges, demand for data centres remains robust. Vacancy rates across most markets are at historic lows and, while new colocation capacity may temporarily ease supply pressures, long-term supply constraints are likely to maintain low vacancy levels.
This dynamic has encouraged developers to take on debt to finance new developments and upgrades, reinforcing their confidence in the market’s continued expansion.?
?? Cloud infrastructure provider Sify Technologies, for example, is reportedly aiming to invest USD 5 billion in India over a period of five years to build smaller AI inferencing facilities in 20 tier-II cities.
?? Similarly, STT Global Data Centres India has announced a USD 404 million data centre campus near Hyderabad, while CtrlS Datacenters is set to develop a new 600 MW capacity data centre park over 40 acres in the Chandanvelly Industrial Park, also in Hyderabad.
?? Japanese IT services provider NTT has also reported the launch of its new six-acre data centre campus in Noida, designed to support a planned capacity of 52.8 MW critical IT load, while CapitaLand India Trust (CLINT) has signed a long-term agreement with a leading global hyperscaler for one of its data centres currently under development.?
Both Sify Technologies and CtrlS Datacenters will be present at GRI Data Centre India 2025, represented by their visionary CEOs: Sharad Agarwal and Sridhar Pinnapureddy, respectively. Join them in Mumbai on February 6th for an exclusive opportunity to connect with industry leaders, gain strategic insights and confidently navigate India’s transformative tech revolution.
GRI Global Chairmen’s Retreat 2025
From 15th to 17th January, St. Moritz hosted the GRI Global Chairman Retreat 2025, the exclusive gathering of the real estate industry’s top decision-makers, including Indian representatives, to analyse the impacts of current macroeconomic and geopolitical developments on the global market.
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?? Free-flowing roundtable discussions among these great minds addressed sector-specific scenarios, revealing optimism across the board for the living sector, with "off the charts” demand, although leaders cautioned whether these could be famous last words.
?? India's real estate market was observed to be emerging and maturing rapidly, driven by high-yielding developments in living sectors such as senior, student, and affordable housing, alongside a growing super-luxury segment. Meanwhile, APAC as a whole continues to solidify its evolving influence as a major capital provider, highlighting the region's expanding role in global real estate investments.
?? Another session on Thursday, kicked off by David Stubbs, Senior Investment Strategist at Blackstone, saw in-depth debate on the pressing question: Is real estate still an inflation hedge? This was followed on Friday by a special keynote speech from bestselling author, Simon Sebag Montefiore, addressing how to win the new world game.
Stay tuned for a full report featuring all of the key takeaways from the event, coming soon to the GRI Hub!
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