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Rise of Commercial Real-estate in India
India’s Skyscrapers are Soaring: The Rise of Commercial Real Estate
India’s metropolitan landscape, once dominated by vast agricultural fields, is changing dramatically. Shining skyscrapers are poking their way through the skyline, not only to house a growing commercial sector but also for residential use. The rise in commercial real estate in India is a reflection of the country’s fast-changing corporate landscape, vibrant young workforce, and rising economy. It is not only about aesthetics. Let’s examine the causes behind this remarkable ascent and speculate about what the future of commercial real estate in India may bring.
India Commercial Real Estate Market Analysis The India Commercial Real Estate Market is expected to increase at a compound annual growth rate (CAGR) of 21.10% from 2024 to 2029, from an estimated USD 40.71 billion in 2024 to USD 106.05 billion. The work-from-home (WFH) movement was brought about by the COVID-19 pandemic, which had a brief effect on new space requirements. The total quantity of new office space in India’s seven largest cities—Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune—was 38.25 million square feet in 2022, a 30% decrease from the year before. In the first quarter of 2023, net office absorption in the top six cities was 8.3 million square feet. The commercial real estate industry is witnessing noteworthy expansion in the retail and hospitality domains, bolstered by substantial contributions from institutional investors. The retail real estate industry has experienced growth thanks to initiatives like GST, RERA, and Made in India. Flexibility, comfort, and convenience are what fuel the need for office space in a variety of businesses, which in turn drives up that need. Technological innovations such as virtual reality, artificial intelligence, and data analytics have raised the bar for commercial real estate by facilitating online transactions, better customer relationship management, virtual property tours, and increased communication between buyers and sellers.
Trends in the Indian Commercial Real Estate Market
India’s Office Space Market is Driven by Demand :
According to Colliers India’s analysis, the availability of office space increased by 49% to 32.8 million square feet in six key cities between January and September. This increase, as opposed to 22 million sq. ft. in the same period last year, is ascribed to the completion of many commercial developments to satisfy rising demand.
India Commercial Real Estate Market Analysis The India Commercial Real Estate Market is expected to increase at a compound annual growth rate (CAGR) of 21.10% from 2024 to 2029, from an estimated USD 40.71 billion in 2024 to USD 106.05 billion. The work-from-home (WFH) movement was brought about by the COVID-19 pandemic, which had a brief effect on new space requirements. The total quantity of new office space in India’s seven largest cities—Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune—was 38.25 million square feet in 2022, a 30% decrease from the year before. In the first quarter of 2023, net office absorption in the top six cities was 8.3 million square feet. The commercial real estate industry is witnessing noteworthy expansion in the retail and hospitality domains, bolstered by substantial contributions from institutional investors. The retail real estate industry has experienced growth thanks to initiatives like GST, RERA, and Made in India. Flexibility, comfort, and convenience are what fuel the need for office space in a variety of businesses, which in turn drives up that need. Technological innovations such as virtual reality, artificial intelligence, and data analytics have raised the bar for commercial real estate by facilitating online transactions, better customer relationship management, virtual property tours, and increased communication between buyers and sellers.
Trends in the Indian Commercial Real Estate Market
India’s Office Space Market is Driven by Demand :
According to Colliers India’s analysis, the availability of office space increased by 49% to 32.8 million square feet in six key cities between January and September. This increase, as opposed to 22 million sq. ft. in the same period last year, is ascribed to the completion of many commercial developments to satisfy rising demand.
While the amount of newly constructed office space declined by 1% (from 8.1 million square feet), some cities saw significant shifts. For example, Chennai saw a large growth from 0.9 million sq. ft. to 4.2 million sq. ft., whereas Mumbai had a 16% fall to 1.8 million sq. ft. Delhi-NCR had a 133% increase in office space from 2.7 million square feet to 6.3 million square feet, while India’s need for office space is still growing overall.
Growing Need for Co-Working and Flexible Spaces:
Among tier-1 cities, Bengaluru has the greatest number of operating flex space centers, followed closely by Mumbai with 343. Pune followed Bengaluru’s lead with 16,000 rented flex seats, recording the second-highest number of leased seats.
In terms of tier-1 cities, the Delhi NCR region completed the most flex seat transactions—147—while Mumbai came in second with 133. With start-ups, the new tech sector, and information technology driving demand for flexible and co-working spaces, the need for these types of spaces is rising. In India, the information technology industry alone accounted for 30% of the flex seat take-up.
As for the need for flexible and co-working spaces in the Indian commercial real estate industry, start-ups accounted for 18% of the total share by choosing these types of facilities.
Important elements influencing India’s commercial real estate market’s expansion
Quick Population Growth and Urbanization:
India is urbanizing quickly due to a growing population and a migration of people from rural to urban areas. The urbanization trend has led to a rise in the need for commercial spaces including office buildings, retail stores, and industrial parks to accommodate the expanding workforce and business.
Sturdy Economic Growth
India’s steady economic growth has been a major factor in the office asset class’s expansion. As the country grows into a global economic powerhouse, multinational organizations, domestic businesses, GCCs, technology, and R&D setups are expanding their operations, which is increasing the need for office space, co-working spaces, and retail centers. The strengthening business climate and strong economic outlook have made commercial real estate an attractive asset class for investors seeking long-term growth potential. Given the caliber of technology being developed in India, even though the recent WFH has posed some challenges.
Governmental Proposals and Reforms
In order to stimulate the real estate sector and draw in both international and domestic investment, the Indian government has put in place a variety of policies and initiatives. Initiatives such as “Make in India,” “Smart Cities Mission,” and “Digital India” have aimed to enhance infrastructure, streamline regulatory processes, and create a business-friendly environment. These policies, which have boosted urban growth, encouraged investment, and improved connectivity, have positively impacted the commercial real estate market.
The inflow of Foreign Direct Investment (FDI)
India has seen a sharp rise in foreign direct investments (FDI) in recent years. India’s real estate sector has attracted foreign investors due to the government’s liberalized policies and measures to loosen rules governing foreign direct investment. The business sector has profited greatly from the growth in demand, especially office buildings and retail assets. FDI brings not only finance but also global best practices and knowledge, which helps the commercial real estate industry grow and become more professional overall.
How Utkal Builders Shaping Bhubaneswar’s Commercial Real Estate Landscape
Bhubaneswar’s commercial real estate market is expanding at an unprecedented rate thanks to the country’s strong economy, expanding urbanization, and improved infrastructure. Utkal Builders has been a prominent participant in this flourishing industry, aiding in the noteworthy growth of the business. This blog discusses the reasons behind Bhubaneswar’s commercial real estate boom as well as how Utkal Builders has managed to establish and maintain its business in this cutthroat market.
Utkal Builders: Utkal Builders Odisha’s leading Commercial Real Estate
Founded with a vision to transform Bhubaneswar’s real estate landscape, Utkal Builders has become a leading name in the commercial real estate sector. Discover a world of commercial excellence with Utkal Builders, offering prestigious properties like Utkal Autograph, Utkal Iconic, Utkal Signature, and Utkal Kanika Galleria and many ventures. Their journey is a testament to strategic planning, innovation, and a commitment to quality. Since 1990, Utkal Builders has transformed buildings into homes, marking a 33-year journey of milestones in real estate. With a commitment to infuse heart into every home, the dynamic, eclectic, and distinct approach has propelled the company’s growth. Utkal Builders, a revered real estate conglomerate in Odisha, is now a benchmark in the industry. Beyond residential and commercial projects, the brand diversifies into innovative sectors, including introducing smart homes in Odisha, driven by intelligent design and innovative technologies. Utkal Builders has elevated the commercial office space standard of Bhubaneswar by presenting “Utkal Signature”- The FIRST EVER landmark for business spread over 2.5 Lakh sqft. with State-of-the-art design, modern facilities, natural surroundings & energy efficient glass façade. In the realm of retail, we have proffered the first fully air-conditioned shopping precinct of Bhubaneswar to “Pantaloons Store” and created one of Bhubaneswar’s most prominent and premium mall “Utkal Galleria”. We have also come up with the first-ever full-blown modern retail arcade named “Utkal Centre Point” at Jajpur Road to facilitate the shoppers of the Kalinga Nagar industrial corridor. “Utkal Iconic” is also an ultra-premium commercial hub strategically located on NH-16. ”Belief in oneself is one of the most important bricks in building any successful venture”. Utkal, driven by a strong conviction and a passion for creating historical landmarks, embodies family values. Built on a foundation of trust spanning over three decades, our singular vision is to “Build Happy Communities.” We believe a home is the soul, nurturing dreams and enriching aspirations for a joyful Life.
Key Strategies Behind Utkal Builders’ Success
Utkal Builders’ success is driven by their strategic location choices, commitment to quality and innovation, and client-focused approach. By identifying and investing in high-potential areas, they have developed properties that meet modern businesses’ demands, offering maximum value through office spaces in bustling business districts and retail outlets in prime locations. Their reputation for delivering high-quality projects is underscored by incorporating the latest innovations in construction and design, ensuring that their buildings are both functional and aesthetically pleasing, with eco-friendly and state-of-the-art facilities. Central to their approach is a deep understanding of their client’s unique needs, providing customized solutions for multinational corporations and startups alike. This client-focused strategy has fostered long-term relationships and a loyal customer base.
Growing Need for Co-Working and Flexible Spaces:
Among tier-1 cities, Bengaluru has the greatest number of operating flex space centers, followed closely by Mumbai with 343. Pune followed Bengaluru’s lead with 16,000 rented flex seats, recording the second-highest number of leased seats.
In terms of tier-1 cities, the Delhi NCR region completed the most flex seat transactions—147—while Mumbai came in second with 133. With start-ups, the new tech sector, and information technology driving demand for flexible and co-working spaces, the need for these types of spaces is rising. In India, the information technology industry alone accounted for 30% of the flex seat take-up.
As for the need for flexible and co-working spaces in the Indian commercial real estate industry, start-ups accounted for 18% of the total share by choosing these types of facilities.
Quick Population Growth and Urbanization:
India is urbanizing quickly due to a growing population and a migration of people from rural to urban areas. The urbanization trend has led to a rise in the need for commercial spaces including office buildings, retail stores, and industrial parks to accommodate the expanding workforce and business.
Sturdy Economic Growth
India’s steady economic growth has been a major factor in the office asset class’s expansion. As the country grows into a global economic powerhouse, multinational organizations, domestic businesses, GCCs, technology, and R&D setups are expanding their operations, which is increasing the need for office space, co-working spaces, and retail centers. The strengthening business climate and strong economic outlook have made commercial real estate an attractive asset class for investors seeking long-term growth potential. Given the caliber of technology being developed in India, even though the recent WFH has posed some challenges.
Governmental Proposals and Reforms
In order to stimulate the real estate sector and draw in both international and domestic investment, the Indian government has put in place a variety of policies and initiatives. Initiatives such as “Make in India,” “Smart Cities Mission,” and “Digital India” have aimed to enhance infrastructure, streamline regulatory processes, and create a business-friendly environment. These policies, which have boosted urban growth, encouraged investment, and improved connectivity, have positively impacted the commercial real estate market.
The inflow of Foreign Direct Investment (FDI)
India has seen a sharp rise in foreign direct investments (FDI) in recent years. India’s real estate sector has attracted foreign investors due to the government’s liberalized policies and measures to loosen rules governing foreign direct investment. The business sector has profited greatly from the growth in demand, especially office buildings and retail assets. FDI brings not only finance but also global best practices and knowledge, which helps the commercial real estate industry grow and become more professional overall.
How Utkal Builders Shaping Bhubaneswar’s Commercial Real Estate Landscape
Bhubaneswar’s commercial real estate market is expanding at an unprecedented rate thanks to the country’s strong economy, expanding urbanization, and improved infrastructure. Utkal Builders has been a prominent participant in this flourishing industry, aiding in the noteworthy growth of the business. This blog discusses the reasons behind Bhubaneswar’s commercial real estate boom as well as how Utkal Builders has managed to establish and maintain its business in this cutthroat market.
Utkal Builders: Utkal Builders Odisha’s leading Commercial Real Estate
Founded with a vision to transform Bhubaneswar’s real estate landscape, Utkal Builders has become a leading name in the commercial real estate sector. Discover a world of commercial excellence with Utkal Builders, offering prestigious properties like Utkal Autograph, Utkal Iconic, Utkal Signature, and Utkal Kanika Galleria and many ventures. Their journey is a testament to strategic planning, innovation, and a commitment to quality. Since 1990, Utkal Builders has transformed buildings into homes, marking a 33-year journey of milestones in real estate. With a commitment to infuse heart into every home, the dynamic, eclectic, and distinct approach has propelled the company’s growth. Utkal Builders, a revered real estate conglomerate in Odisha, is now a benchmark in the industry. Beyond residential and commercial projects, the brand diversifies into innovative sectors, including introducing smart homes in Odisha, driven by intelligent design and innovative technologies. Utkal Builders has elevated the commercial office space standard of Bhubaneswar by presenting “Utkal Signature”- The FIRST EVER landmark for business spread over 2.5 Lakh sqft. with State-of-the-art design, modern facilities, natural surroundings & energy efficient glass façade. In the realm of retail, we have proffered the first fully air-conditioned shopping precinct of Bhubaneswar to “Pantaloons Store” and created one of Bhubaneswar’s most prominent and premium mall “Utkal Galleria”. We have also come up with the first-ever full-blown modern retail arcade named “Utkal Centre Point” at Jajpur Road to facilitate the shoppers of the Kalinga Nagar industrial corridor. “Utkal Iconic” is also an ultra-premium commercial hub strategically located on NH-16. ”Belief in oneself is one of the most important bricks in building any successful venture”. Utkal, driven by a strong conviction and a passion for creating historical landmarks, embodies family values. Built on a foundation of trust spanning over three decades, our singular vision is to “Build Happy Communities.” We believe a home is the soul, nurturing dreams and enriching aspirations for a joyful Life.
Key Strategies Behind Utkal Builders’ Success
Utkal Builders’ success is driven by their strategic location choices, commitment to quality and innovation, and client-focused approach. By identifying and investing in high-potential areas, they have developed properties that meet modern businesses’ demands, offering maximum value through office spaces in bustling business districts and retail outlets in prime locations. Their reputation for delivering high-quality projects is underscored by incorporating the latest innovations in construction and design, ensuring that their buildings are both functional and aesthetically pleasing, with eco-friendly and state-of-the-art facilities. Central to their approach is a deep understanding of their client’s unique needs, providing customized solutions for multinational corporations and startups alike. This client-focused strategy has fostered long-term relationships and a loyal customer base.
