India Commercial Real Estate Market: Industry Size and Growth Trends [2027] Analyzed by TechSci ResearchPosted by Kumar on May 27th, 2024 According to TechSci Research report, “India Commercial Real Estate Market By Type (New Construction, and Resale) By Category (Shopping Centres and Malls, Medical & Educational Buildings, Hotels & Offices, and Others) By Mode (Online & Offline), By Region, Company Forecast & Opportunities, FY2027,” the India commercial real estate market is projected to experience steady growth over the next five years. This growth is driven by the increasing demand for spaces to support retail, e-commerce, and IT solutions, catering to a diverse range of end-user industries. Additionally, the expansion of the IT sector, fueled by the growing trend of digitalization and the adoption of advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and data analytics, is expected to further bolster market growth. The high demand for co-working spaces from both startups and large organizations is also a significant contributor to the growth of the commercial real estate market. The retail sector's development, which aims to enhance product visibility for both local and multinationalcompanies (MNCs), is anticipated to create lucrative opportunities for market expansion. Browse XX Figures spread through XX Pages and an in-depth TOC on “India Commercial Real Estate Market”. https://www.techsciresearch.com/report/india-commercial-real-estate-market/7722.html
Recent Trends in India Commercial Real Estate Market Growing Demand for Flexible Workspaces The demand for flexible and co-working spaces is on the rise in the Indian office real estate market. Industry experts report that as of March, Bengaluru had the most operational flex space centers among all tier-1 cities in India, followed by Mumbai with 343 flex space centers. Bengaluru also led in leased flex seats, recording around 25,000 leased flex seats, the highest among tier-1 cities, with Pune following at over 16,000 leased flex seats. In the financial year, the Delhi NCR region saw the highest number of flex seat transactions, with 147 concluded deals, followed by Mumbai with 133 transactions. The information technology and new tech sectors accounted for 30% of the flex seat take-up, the highest among all sectors, while startups contributed 18% of the total share. Surge in Office Space Supply Bengaluru recorded the highest influx of new office supply, accounting for 28% of the total new office supply across seven major cities in India. Hyderabad followed with a 23% share. Chennai saw a 124% year-on-year (YoY) increase with the leasing of one million square feet (msf) recorded in 2022. Ahmedabad experienced a substantial 165% YoY rise in gross leasing in 2022, albeit from a low base. According to research by real estate consultant Colliers India, office space supply increased by 49% to 32.8 million square feet during January-September across six cities due to the completion of numerous commercial developments. This was a significant increase from the 22 million square feet recorded in the same period across Bengaluru, Chennai, Delhi-NCR, Hyderabad, Pune, and Mumbai the previous year. Impact of COVID-19 The COVID-19 pandemic had a profound impact on the commercial real estate market in India. The nationwide lockdown and strict regulations enforced by authorities led to significant business disruptions and financial losses. People curtailed spending on non-essential items, adversely affecting demand in the commercial real estate market. However, the pandemic also accelerated the adoption of online channels for payments and property transactions, a trend expected to boost the commercial real estate market in the coming years. Market Drivers Digitalization and Technological Advancements The growth of the IT industry, driven by the increasing digitalization trend across the country, is a major driver for the commercial real estate market. The adoption of advanced technologies such as AI, IoT, and data analytics is creating a significant demand for IT infrastructure and office spaces. Demand for Retail Spaces The development of the retail sector, aimed at boosting products from both local businesses and MNCs, is expected to create substantial opportunities for the commercial real estate market. Shopping centers, malls, and retail outlets are increasingly becoming key components of commercial real estate investments. Foreign Direct Investment (FDI) and Policy Support Supportive government initiatives, along with an expected rebound in GDP, are fostering the growth of the commercial real estate market. The ease of doing business, coupled with incentives for FDI, is attracting a plethora of multinational companies to invest in India. This influx of foreign capital is expected to significantly influence market growth. Affordable Labor and Land India's availability of affordable labor and land, combined with ongoing infrastructural development projects, is expected to support the growth of the commercial real estate market over the next five years. The development of smart cities and improved connectivity are also contributing to the sector's expansion. Growth of Small Businesses and Startups The increase in small businesses and startups, supported by favorable policies and a strong entrepreneurial spirit, is driving demand for commercial spaces. Co-working and flexible office spaces are particularly popular among startups, further fueling market growth. Competitive Analysis Leading Market Players The India commercial real estate market is highly competitive, with several key players actively involved in market development. Notable companies include:
Strategies for Market Growth These leading players are increasingly focusing on research and development to drive higher growth in the market. To meet evolving customer demands for better efficiency and durability, several commercial real estate manufacturers are introducing technologically advanced offerings. Innovations in construction techniques, sustainable building practices, and smart infrastructure are becoming key differentiators in the competitive landscape. Regional Distribution The market is segmented by region, with major activities centered in metropolitan areas such as Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Pune, and Chennai. Each region presents unique opportunities and challenges, influenced by local economic conditions, infrastructure development, and government policies. Benefits of the Research Report The comprehensive research report on the India commercial real estate market provides numerous benefits, including:
The India commercial real estate market is poised for steady growth, driven by factors such as the expansion of the IT sector, increasing demand for flexible workspaces, and supportive government policies. The market's competitive landscape is shaped by key players who are focusing on innovation and technological advancements to meet evolving customer needs. With the rise of digitalization, foreign investments, and the growth of small businesses, the commercial real estate market in India presents significant opportunities for investors and stakeholders. The comprehensive research report provides valuable insights and data, enabling informed decision-making and strategic planning for future growth. “Commercial real estate is adopting modern technologies to advance the existing infrastructure and reduce the dependency on manual labor is expected to contribute to market growth. The commercial real estate industry uses 3D technology, smart wearables, focused drones, virtual reality, and radio frequency identification technology, amongst others to enhance the consumer experience. Construction companies are using innovative technologies and applications and the facility to provide the virtual tour to consumers is expected to propel the commercial real estate market growth till FY2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm. “India Commercial Real Estate Market By Type (New Construction, and Resale) By Category (Shopping Centres and Malls, Medical & Educational Buildings, Hotels & Offices and Others) By Mode (Online & Offline), By Region, Company Forecast & Opportunities, FY2027” has evaluated the future growth potential of India commercial real estate market and provided statistics & information on market size, shares, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the of India commercial real estate market.
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