India Commercial Real Estate Market Size Accelerates 3.9X to Surpass USD 213 Billion by 2030
India Commercial Real Estate Market is flourishing due to an accelerated economic development, rapid urbanization, and robust expansion of IT/ITeS industry.
Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated India Commercial Real Estate Market size by value at USD 54.56 billion in 2023. During the forecast period between 2024 and 2030, Report Ocean expects India Commercial Real Estate Market size to expand at a CAGR of 21.5% reaching a value of USD 213.32 billion by 2030. The Commercial Real Estate Market in India is propelled by strategic government initiatives, such as the Smart Cities Mission and Make in India, coupled with robust infrastructure development encompassing metro rail networks, expressways, and airports. These endeavors are collectively enhancing India's urban landscape, thereby fostering improved connectivity, logistics efficiency, and overall urban development. Consequently, these factors are attracting businesses and stimulating growth within the commercial real estate sector. While the COVID-19 pandemic temporarily disrupted the market growth, with a noticeable decline in new office space absorption in 2022, the sector is demonstrating resilience, as evidenced by the rebound in net office absorption during early 2023. Concurrently, the retail and hospitality segments are experiencing robust growth, underpinned by significant institutional investment. Furthermore, the escalating demand for flexible, comfortable, and convenient office spaces across diverse industries is driving office space absorption. The integration of technology, including artificial intelligence, virtual reality, and data analytics, is revolutionizing the commercial real estate industry by enhancing customer experiences, facilitating efficient transactions, and optimizing property management.
Opportunity - Increasing Number of Data Centers across India
The data center industry in India has experienced remarkable growth, doubling in size over the past three years and reaching 722 megawatts with robust occupancy levels. This rapid expansion underscores the increasing demand for data storage and processing capabilities driven by the nation's digital transformation. With projections indicating that the data center market will double again in the next three years, requiring an additional investment of approximately USD 5 billion, the sector's growth reflects the critical role of data infrastructure in supporting a digital economy. The substantial investment and development in data centers illustrate their vital contribution to India's technological advancement and economic progress.
South India Leading India Commercial Real Estate Market
Bengaluru, popularly called Silicon Valley of India. is the commercial powerhouse of South India. A recent joint report by CBRE and the Confederation of Indian Industry paints a compelling picture of Bengaluru as the undisputed commercial titan of South India. Projected to house a staggering 330-340 million square feet of office space by 2030, the city's growth trajectory is nothing short of phenomenal. From a modest 100 million square feet in 2013, Bengaluru's office stock has surged to over 223 million square feet by mid-2024, a testament to its explosive expansion. The meteoric rise is fueled by the city's thriving technology, engineering, manufacturing, and BFSI sectors, which collectively generate an insatiable appetite for office space. Strategic land availability, coupled with robust infrastructure development in peripheral areas, has solidified Bengaluru's dominance. With consistent high absorption rates and a dynamic business environment, the city is poised to retain its crown as the commercial heart of South India over the forecast period.
Impact of Escalating Geopolitical Tensions on India Commercial Real Estate Market
India Commercial Real Estate Market may face significant challenges from intensifying geopolitical tensions across the world. The resulting economic uncertainty can deter foreign direct investments, hindering the expansion of multinational corporations. As investor confidence wanes, capital inflows into the sector may dwindle, dampening demand for office spaces, retail outlets, and industrial facilities. Moreover, disrupted global supply chains due to instability can inflate construction costs and delay project timelines. Domestic businesses may also adopt a cautious stance, postponing expansion plans and further restricting the growth potential of India Commercial Real Estate Market.
Competitive Landscape
India Commercial Real Estate Market is fragmented, with numerous players serving the market. The key players dominating India Commercial Real Estate Market include DLF Ltd, Godrej Properties Ltd, Housing Development and Infrastructure Ltd (HDIL), Oberoi Realty Limited, Equinox India Developments Limited, Prestige Estate Projects Ltd, Supertech Limited, Savills Property Services (India) Private Limited, Brigade Group, and Unitech Real Estate Pvt Ltd. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.
The report's in-depth analysis provides information about growth potential, upcoming trends, and India Commercial Real Estate Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Commercial Real Estate Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
