The Indian commercial real estate sector has been on an upward trajectory in recent years, with a growth rate that has outpaced most other sectors. In fact, the sector has grown by over 50 times in the last two decades, and it shows no signs of slowing down anytime soon. One of the key drivers of this growth has been the increasing demand for office space from India’s burgeoning IT sector. With the rapid growth of the country’s technology industry, the demand for commercial real estate has skyrocketed, with IT companies requiring large office spaces to accommodate their growing workforce. Another factor that has contributed to the growth of the commercial real estate sector in India is the increasing trend towards urbanization. As more and more people move to cities in search of better job opportunities and a higher standard of living, the demand for commercial real estate in these urban areas has surged.
Additionally, the Indian government’s recent initiatives to boost the economy, such as the “Make in India” campaign and the implementation of Goods and Services Tax (GST), have also had a positive impact on the commercial real estate sector. These policies have encouraged foreign investors to enter the Indian market, leading to a surge in demand for office and retail space. Furthermore, the development of new infrastructure projects, such as metro rail networks, has opened up previously inaccessible areas for commercial development, increasing the supply of commercial real estate. Another factor contributing to the growth of the commercial real estate sector is the availability of financing options. Banks and financial institutions are increasingly willing to lend to developers, making it easier for them to fund new projects.
All of these factors combined have created a highly favourable environment for the commercial real estate sector in India, with a growth rate that has been nothing short of remarkable. In fact, according to a report by CBRE, a leading global real estate consultancy firm, the total stock of Grade-A office space in India is expected to reach 1 billion sq. ft. by 2030, up from the current level of around 600 million sq. ft. Overall, the Indian commercial real estate sector is booming, with a growth rate that has surpassed even the most optimistic of expectations. With the continued growth of the country’s technology industry, the trend towards urbanization, and the government’s pro-business policies, the sector is poised for even greater growth in the years to come.