Commercial Real Estate In India – Market Growth and Trends

The Indian real estate market is projected to expand at a CAGR of 9.60 percent between 2022 and 2027. Keeping the uncertainties of COVID-19 in mind, we are constantly tracking and evaluating the pandemic’s direct and indirect impact. The report cites these findings as a significant market contributor. Real estate is a type of property that includes both land and improvements such as structures, roads, and utility systems.

Because of the high return on investment (ROI) and tax benefits, real estate investments in India are rapidly increasing. Commercial properties include shopping malls, individual stores, office towers, parking spaces, medical centers, hotel chains, and industrial buildings used for manufacturing, mechanical production, R&D, manufacturing, transportation, logistic support, and warehousing. Some examples are undeveloped property, empty land, single-family homes, residences, apartment buildings, townhouses, and other living arrangements.

India Real Estate Market Trends

In terms of job creation, the real estate industry in India is second only to agriculture. This is due to the rising demand for residential properties due to rapid population growth and rising individual earnings. Furthermore, the rising demand for modern office space and the new phase of urban and semi-urban lodging are propelling growth.

Moreover, the demand for data storage facilities is growing with the increased use of communication systems and the application of 5G and data localization standards. As a result, the demand for resilient data center infrastructure rises, boosting market growth. Aside from that, the Government of India’s initiatives, such as investment opportunities in innovative city projects and tax deductions for mortgage interest, are expected to create profitable business chances for Indian industry investors.

Key Market Segmentation

IMARC Group analyzes and forecasts the key trends in each sub-segment of the Indian real estate market from 2022 to 2027. Our report classified the market as mode, property, and business.

Breakup by Property

  • Commercial
  • Land
  • Industrial
  • Residential

Breakup by Business

  • Rental
  • Sales

Breakup by Mode

  • Offline
  • Online

Breakup by Region

  • West and Central India
  • East India
  • North India
  • South India

Commercial Real Estate Sector in India

Commercial real estate is one of the most searched investment opportunities in India. Commercial real estate in India is classified in two ways: by type and city. When it comes to city segmentation, the sector is divided into key cities such as:

  • Chennai
  • Pune
  • Bengaluru
  • Mumbai
  • Hyderabad
  • NCR
  • Delhi
  • Kolkata
  • Ahmedabad and The rest of India

Commercial real estate trends for the future

With the market on the rise, the following are the trends that the commercial sector can expect in the coming year(s).

1. The use of flexible spaces is expected to increase in the coming years. This is because many prefer flexible, co-working offices for comfort and security. There has been an increase in demand for co-working and flexible spaces since the pandemic.

2. Commercial and residential real estate property builders and developers are looking for ways to green their assets. Because the world is becoming more eco-friendly, this is one of the opportunities for the Indian real estate sector.

3. The newest addition to commercial real estate is shop-cum-office space. Investors and business owners can use them for retail or office purposes. Many new-age investors appear interested in making the best use of their commercial spaces. As investors seek to diversify their portfolios, shop-cum-office space is the new commercial real estate market trend.

Summary

By 2025, the Indian real estate market is expected to account for nearly 13% of the country’s GDP. Shortly, large-scale institutional investments are expected to propel India’s commercial real estate market. The commercial real estate industry is also seeing significant growth in retail and hospitality, providing the much-needed infrastructure for India’s expanding needs.

This study will comprehensively examine commercial real estate property news and Commercial Real Estate Trends 2022 News in India. It focuses on the commercial real estate market dynamics, technical developments, insights, and government efforts.

Reforms implemented by the government, such as establishing the Real Estate Regulatory Authority (RERA) and implementing GST, have considerably enhanced the country’s commercial real estate industry. Despite its early challenges, developers and buyers are flocking to the commercial real estate industry because of its openness and competency, attracting increasing amounts of foreign direct investment (FDI).

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