Overview
India’s commercial real estate sector is undergoing a remarkable transformation, emerging stronger and more resilient in the wake of the COVID-19 pandemic. With the market projected to grow from USD 40.71 billion in 2024 to USD 106.05 billion by 2029, at a robust CAGR of 21.10% according to Mordor Intelligence, the demand for office spaces, retail outlets, and industrial parks is surging, supported by infrastructure development, supportive government policies, and expanding economic opportunities.
India’s emergence as a global IT hub has also significantly spurred the demand for commercial real estate. The top eight cities alone account for over 900 million square feet of office stock. Special Economic Zones (SEZs), Software Technology Parks (STPs), and Export-Oriented Units (EOUs) have played a vital role in fostering this growth. These initiatives have provided businesses with favourable environments, contributing to increased commercial real estate activity across the country.
Simultaneously, technological innovation is redefining the sector, with AI-powered solutions and smart building technologies enhancing operational efficiency and lowering costs. Savills India reports that the nation’s growing digital economy is driving unprecedented demand for data centres, with an estimated 15-18 million square feet of additional real estate required by 2025 to support the increasing reliance on cloud services and digital transformation.