India Commercial Real Estate Market Research Report Information By Type (Offices, Retail, Industrial and Logistics, and Hospitality), – India Market Forecast Till 2032

India Commercial Real Estate Market Overview

India Commercial Real Estate Market Size was valued at USD 41.6 Billion in 2022. The Commercial Real Estate industry is projected to grow from USD 50.59 Billion in 2023 to USD 241.82 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 21.60% during the forecast period (2024 - 2032). Increasing urbanization, growing government policies, and economic growth are the main market drivers expected to stimulate India's commercial real estate market.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

India Commercial Real Estate Market Trends

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  Growing government policies are driving market growth

  
  

The Indian economy has shown incredible resiliency in the face of challenges facing the global economy. The nation's economy is currently the fifth largest in the world, but the International Monetary Fund predicts that by 2029, it will rise to the third rank. India's nominal GDP is expected to rise from USD 3.5 trillion in 2022 to USD 7.3 trillion by 2030, according to S&P Global. The nation's need for commercial real estate has reached an all-time high as a result of this economic boom. The pandemic, continuing international conflict, and shifting global manufacturing and supply chains are just a few of the obstacles that 2020 and 2021 brought about, but overall, net absorption levels have stayed favorable. This opinion is supported by a second study conducted by a well-known real estate consultancy worldwide, which projects that commercial real estate in India will continue to rise gradually and sustainably in the near future. The positive outlook in the market has made the commercial real estate sector one of the most in-demand in the whole economy. In this article, we will talk about a few of the reasons behind the rise in commercial real estate in India. But it's important to remember that the office spaces that today's workers want are very different from conventional offices. The workplaces of the future must be just as modern, and one of the most sought-after types of commercial real estate in the current market is coworking spaces.

Furthermore, Foreign direct investments have poured into India as a result of the government's flexible policy framework. Due to the country's relaxation of FDI regulations, it received a record amount of US$46.03 billion in FY 2021–2022. In addition, state and federal government organizations have contributed to the infrastructure's development; as a result, the nation now boasts a skyline lined with skyscrapers as well as progressive transit systems like Metro. In an effort to boost the nation's investment potential, the government has also implemented a number of reforms, including the Smart Cities Mission and the RERA. The Indian real estate market has changed, becoming more accountable and transparent thanks in large part to the efforts of the Real Estate Regulatory Authority. Thus, result in driving the Commercial Real Estate market revenue.

India Commercial Real Estate Market Segment Insights

Commercial Real Estate Type Insights

The India Commercial Real Estate market segmentation, based on Type, includes Offices, Retail, Industrial and Logistics, and Hospitality. The retail segment dominated the market mostly. Large-scale institutional investments are expected to propel India's commercial real estate market in the upcoming years. Government programs like Made in India and other real estate reforms, including the establishment of the Real Estate Regulatory Authority (RERA) and GST, have significantly increased the country's retail real estate market.

Figure 1: India Commercial Real Estate Market, by Type, 2023 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Commercial Real Estate Country Insights

The commercial real estate industry is one of the most in-demand in the entire economy due to the market's optimistic outlook. In this piece, we'll discuss a few of the factors contributing to the growth of commercial real estate in India. It's crucial to keep in mind, meanwhile, that modern employees require office environments that are considerably different from traditional workspaces. Future workplaces need to be just as contemporary, and coworking spaces are already among the most sought-after categories of commercial real estate on the market. Bangalore is expected to remain a desirable location for IT companies and associated industries due to its stable economic environment, availability of highly skilled workers, and ongoing inflow of new businesses.

India Commercial Real Estate Key Market Players & Competitive Insights

Leading market players are putting a lot of money into R&D to broaden their product offerings, which will spur further growth in the commercial real estate industry. Additionally, market players are engaging in a range of calculated actions to increase their presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure an increasingly cutthroat and dynamic market, the Commercial Real Estate industry must offer cost-effective items.

Major players in the Commercial Real Estate market are engaging in research and development activities in an effort to boost market demand, including DLF Ltd, Godrej Properties Ltd, Housing Development and Infrastructure Ltd (HDIL), Oberoi Realty, India Bulls Real Estate, Prestige Estate Projects Ltd, Supertech Limited, HDIL Ltd, Brigade Group, and Unitech Real Estate Pvt Ltd.

Key Companies in the India Commercial Real Estate market include

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  DLF Ltd

  
  


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  Godrej Properties Ltd

  
  


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  Housing Development and Infrastructure Ltd (HDIL)

  
  


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  Oberoi Realty

  
  


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  IndiaBulls Real Estate

  
  


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  Prestige Estate Projects Ltd

  
  


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  Supertech Limited

  
  


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  HDIL Ltd

  
  


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  Brigade Group

  
  


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  Unitech Real Estate Pvt Ltd.

  
  

India Commercial Real Estate Industry Developments

In November 2022, Tiger Global backed a collaboration between the Butlr occupancy detection platform and Propstack technology-based data company to enable occupancy sensing in emerging commercial real estate projects across India.

In April 2022, a joint initiative with TATA Realty and Infrastructure Limited was created by Canada Pension Plan Investment Board ("CPP Investments") to build and lease commercial office spaces in India. The joint venture will develop and stabilize assets with a view of managing assets of more than INR 50 billion (USD 604.18).

In November 2021, Ascendas India, a business arm of Singapore-based Ascendas Pte, acquired a 16-storey corporate office asset in Navi Mumbai from Aurum Ventures for Rs 353 crore(US$47 million), which in the last few years has been the highest investment in the standalone commercial assets by any global institutional investor.

In May 2021, Blackstone Real Estate completed the acquisition of Embassy Industrial Parks for Rs 5,250 crores (USD 716.49 million) to increase its foothold in the country.

In April 2021, HDFC Capital Advisors (HDFC Capital) and Cerberus Capital Management (Cerberus) joined forces to launch an India-focused High Yield Residential Real Estate Investment Trust. The platform aims to acquire inventory and extend the last mile of funding into underdevelopment residential projects across the country.

India Commercial Real Estate Market Segmentation

Commercial Real Estate Type Outlook

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  Offices

  
  


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  Retail

  
  


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  Industrial and Logistics

  
  


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  Hospitality