India’s commercial real estate sector is poised for explosive growth over the next decade, with the market expected to jump from $49.8 billion in 2024 to a staggering $253.32 billion by 2033, according to a new report by IMARC Group. With a compound annual growth rate (CAGR) projected at 19.81% between 2025 and 2033, the sector is undergoing rapid transformation driven by new workplace models, ESG priorities, and infrastructure investments.

Flexible work arrangements are reshaping demand, particularly for Grade-A office spaces outfitted with modern amenities and sustainability features. “The increasing demand for co-working space is creating alternatives that are accessible to startups and longer-standing firms,” the report states. As hybrid work becomes mainstream, prime markets such as Bengaluru, Mumbai, and Delhi-NCR continue to attract occupiers seeking adaptable, high-performance work environments.

Sustainability is emerging as a cornerstone of development strategy, with developers increasingly adopting certifications like LEED and IGBC to align with corporate ESG goals. This focus is helping reposition buildings as green assets that appeal to multinational tenants and institutional investors. “Sustainability is becoming a key priority,” the report notes, signalling a broader shift in how space is built, marketed, and leased.

While metro hubs dominate current demand, tier-2 cities are gaining momentum due to improved connectivity, infrastructure upgrades, and lower operating costs. As the report highlights, “tier-2 cities are being recognized as viable options,” suggesting that the next wave of growth may stem from locations previously considered peripheral.

Beyond office space, the industrial and logistics segments are witnessing significant tailwinds from the e-commerce boom and government-led initiatives like the National Logistics Policy. “The industrial and logistics sectors are booming,” with developers and investors capitalizing on the surge in warehouse and fulfilment space demand. Retail is also bouncing back, pivoting toward experience-focused formats and integrated mixed-use developments.

On the investment front, Real Estate Investment Trusts (REITs) are becoming a favoured vehicle for both domestic and global players seeking exposure to India’s commercial property landscape. The report emphasizes that “institutional investment interest is strong,” reinforcing the long-term confidence in the sector’s fundamentals.

The report paints a picture of a highly diversified and resilient market with end-use segments spanning offices, retail, and leisure across all regions—North, South, East, and West India. As India’s economic momentum continues, the commercial real estate sector is adapting rapidly, offering opportunities for developers, occupiers, and investors to capitalize on the shift toward more flexible, sustainable, and technology-enabled spaces.