Mordor Intelligence has published a new report on the India Commercial Real Estate Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
India Commercial Real Estate Market Introduction
The India commercial real estate market is undergoing significant expansion, with its value estimated to reach USD 49.3 billion by 2025. This market is growing at a compound annual growth rate (CAGR) of 21.1% and is expected to reach USD 128.4 billion by 2030. This momentum is largely driven by rapid urbanization, sustained economic growth, and government initiatives aimed at infrastructure development and housing. Major cities like Mumbai, Delhi NCR, Bengaluru, and Hyderabad are witnessing increased activity across office, retail, logistics, and hospitality segments.
The India commercial real estate market has also benefited from structural policy reforms, such as the implementation of the Goods and Services Tax (GST), Real Estate Regulatory Authority (RERA), and the easing of foreign direct investment (FDI) norms. These measures have not only brought greater transparency and regulatory oversight but also attracted both domestic and international investors. With increasing demand for office space, retail expansion, and logistics hubs, the sector continues to present strong potential for sustained growth.
India Commercial Real Estate Market Key Trends
Demand for Flexible and Modern Office Spaces
As work cultures shift toward hybrid and flexible models, there is a growing preference for adaptable office spaces that meet new employee expectations. The rise of coworking environments and business parks in urban centers has contributed significantly to the demand for modern office infrastructure. Organizations, particularly in the IT and startup sectors, are gravitating towards shared workspaces that offer better amenities and lease flexibility. Cities such as Bengaluru and Hyderabad are seeing substantial absorption rates for such properties.
Retail and Hospitality Sector Revival
The revival of consumer sentiment, combined with increasing disposable incomes and growth in e-commerce, has given a boost to the retail real estate segment. Developers are focusing on high-street retail, shopping centers, and experience-based retail spaces in urban and suburban areas. Similarly, the hospitality sector is recovering after a pandemic-induced slump. There is a notable increase in the development of business hotels and serviced apartments, especially in tier 1 and tier 2 cities. Tourism and business travel are further contributing to this rebound.
Foreign Investment and Institutional Interest
Foreign direct investment has played a key role in advancing commercial real estate in India. The relaxation of FDI norms in real estate and infrastructure has led to increased capital inflows from institutional investors and global real estate funds. The Smart Cities Mission and infrastructure spending are also helping to create better urban ecosystems, further drawing interest from foreign entities. These investments are not only financing new developments but also leading to consolidation and joint ventures among local and global developers.
India Commercial Real Estate Market Segmentation
The India commercial real estate market is segmented by property type and geography. Each segment plays a distinct role in the growth story:
By Property Type:
- Offices – Includes corporate office buildings, coworking spaces, and business parks. The demand is largely driven by IT/ITES, BFSI, and professional services firms.
- Retail – Comprises shopping malls, retail chains, and standalone stores. Increasing consumer demand is pushing developers to focus on mixed-use spaces that combine shopping, dining, and entertainment.
- Industrial and Logistics – Consists of warehouses, logistics parks, and industrial hubs. Growth in e-commerce and supply chain optimization are key drivers.
- Hospitality – Covers hotels, resorts, and service apartments. Business travel and domestic tourism are encouraging hotel development in both metro and non-metro cities.
By Key Cities:
- Mumbai – Financial capital and a leading hub for office and retail spaces.
- Delhi NCR – Expanding office clusters in Gurgaon and Noida, and a growing logistics network.
- Bangalore – Stronghold of the IT industry, with high office space absorption.
- Hyderabad – Gaining traction for both office and industrial real estate.
- Other Cities – Pune, Chennai, Ahmedabad, and Kochi are emerging centers with diverse opportunities in retail, logistics, and hospitality.
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India Commercial Real Estate Market Key Players
Several key developers and real estate companies play important roles in shaping the India commercial real estate market. These firms are involved in planning, constructing, and managing various commercial properties across the country.
- DLF Ltd – One of India’s largest developers, with a strong presence in both office and retail segments. The company has delivered several landmark commercial projects.
- Godrej Properties Ltd – Active across major cities, known for sustainable and high-quality office and mixed-use developments.
- Housing Development and Infrastructure Ltd (HDIL) – Focuses on redevelopment and commercial projects, especially in Mumbai.
- Oberoi Realty – Known for its upscale residential and commercial offerings, primarily in Mumbai.
- IndiaBulls Real Estate – Operates in residential and commercial segments, focusing on land acquisition and development strategies.
Other players like Prestige Estate Projects, Brigade Group, Unitech Real Estate Pvt Ltd, and Supertech Limited also contribute significantly across different regions and property types.
Explore more about India Commercial Real Estate Market Competitive Landscape: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-india/companies?utm_source=linkewire
Conclusion
The India commercial real estate market is on a steady growth path, backed by urban expansion, increasing demand for office and retail spaces, and supportive regulatory frameworks. As companies seek new types of workspaces and as consumers return to malls, hotels, and entertainment venues, developers are adapting their offerings to meet these expectations. Strong interest from institutional and foreign investors adds to the sector’s momentum, making it one of the more resilient and attractive areas of the Indian economy. With consistent infrastructure investments and smart city developments underway, the market is likely to offer sustained opportunities in the coming years.
For complete market analysis, visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/commercial-real-estate-market-in-india?utm_source=linkewire
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