India Office Real Estate Market Size (2024 - 2029)

The India Office Real Estate Market is projected to experience significant growth over the forecast period, driven by evolving workplace strategies and the integration of hybrid models. Despite initial market sentiment challenges due to the pandemic, the completion of pre-2021 deals and ongoing vaccination efforts have stabilized corporate return-to-work plans. Occupiers are increasingly focusing on blending traditional leased spaces with remote and flexible options, aiming to decentralize workplaces and optimize costs to accommodate a more mobile workforce.

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Market Size of India Office Real Estate Industry

India Office Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 33.41 Billion
Market Size (2029) USD 117.04 Billion
CAGR (2024 - 2029) 28.50 %
Market Concentration Low

Major Players

India Office Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Office Real Estate Market Analysis

The India Office Real Estate Market size is estimated at USD 33.41 billion in 2024, and is expected to reach USD 117.04 billion by 2029, growing at a CAGR of 28.5% during the forecast period (2024-2029).

The second wave impacted market sentiments, with several occupiers taking a cautious approach to ongoing business uncertainties. However, several deals negotiated before 2021 were completed, and the vaccination drive is helping corporations gain a better understanding of return-to-work dates.

Occupiers are likely to focus more on integrating traditional leased spaces, remote working options, and flexible spaces within their real estate portfolios to develop a hybrid workplace model. The plan to decentralize the workplace and provide more locations to satisfy the needs of a more mobile workforce is anticipated to be aimed at cost and portfolio optimization.

India Office Real Estate Industry Segmentation

Office real estate is the business of building buildings that companies from different industries can rent or buy.The goal of this report is to give an in-depth look at the Indian office real estate market.It looks at the market insights, dynamics, technological trends, and government projects in the office real estate sector.The report also looks at the major players in the market and how competitive the Indian office real estate market is.

The India Office Real Estate Market is divided into major cities (Bengaluru, Hyderabad, and Mumbai). The report offers market size and forecasts in dollars (USD billion) for all the above segments.

By Major Cities
Bengaluru
Hyderabad
Mumbai
Other Cities
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India Office Real Estate Market Size Summary

The Indian office real estate market is poised for significant growth, driven by the increasing demand from sectors such as IT, healthcare, e-commerce, and logistics. The market is adapting to new workplace dynamics, with a focus on hybrid models that integrate traditional leased spaces with remote and flexible options. This shift is part of a broader strategy to optimize costs and portfolios by decentralizing workplaces to accommodate a more mobile workforce. Despite initial setbacks due to the COVID-19 pandemic, the market has shown resilience, with a notable increase in office leasing and a surge in private equity investments. The easing of Foreign Direct Investment (FDI) rules has further attracted new companies to the Indian market, enhancing its growth potential.

The competitive landscape of the Indian office real estate market is marked by the presence of both domestic and international players, offering numerous opportunities, particularly in tier 2 cities. Major developers and consultancy firms, such as Indiabulls Real Estate, DLF Ltd., and Cushman & Wakefield, are actively contributing to the market's expansion. The Securities and Exchange Board of India's initiatives to make Real Estate Investment Trusts (REITs) more accessible have also bolstered market participation. With substantial commercial projects underway in key cities like Bengaluru, Mumbai, and Delhi-NCR, the market is set to experience robust growth, supported by increased absorption of Grade-A office space and ongoing developments in commercial infrastructure.

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India Office Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Overview

    3. 1.3 Market Dynamics

      1. 1.3.1 Market Drivers

      2. 1.3.2 Market Restraints

      3. 1.3.3 Market Opportunities

    4. 1.4 Technological Innovations in the Office Real Estate Market

    5. 1.5 Insights on Government Regulations and Initiatives in the Industry

    6. 1.6 Insights on Rental Yields in the Office Real Estate Segment

    7. 1.7 Insights on the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy(%)/Vacancy (%))

    8. 1.8 Insights on Office Real Estate Construction Cost

    9. 1.9 Impact of COVID-19 on the Market

    10. 1.10 Porter's Five Forces Analysis

      1. 1.10.1 Bargaining Power of Suppliers

      2. 1.10.2 Bargaining Power of Consumers/Buyers

      3. 1.10.3 Threat of New Entrants

      4. 1.10.4 Threat of Substitute Products

      5. 1.10.5 Intensity of Competitive Rivalry

    11. 1.11 Industry Value Chain Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Major Cities

      1. 2.1.1 Bengaluru

      2. 2.1.2 Hyderabad

      3. 2.1.3 Mumbai

      4. 2.1.4 Other Cities

India Office Real Estate Market Size FAQs

The India Office Real Estate Market size is expected to reach USD 33.41 billion in 2024 and grow at a CAGR of 28.5% to reach USD 117.04 billion by 2029.

In 2024, the India Office Real Estate Market size is expected to reach USD 33.41 billion.

India Office Real Estate Market Report Snapshots

India Office Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)