India’s real estate sector will grow from Rs 40 lakh crore in 2023 to Rs 83 lakh crore by 2030, driven by urbanization, government initiatives, and commercial expansion. Office leasing and the interior fit-out industry are thriving and fueled by IT, BFSI, and hybrid work trends in major cities.
India’s real estate sector is on a rapid growth trajectory, expected to expand from Rs 40 lakh crore in 2023 to Rs 83 lakh crore by 2030, according to a report by CareEdge Ratings. The sector, which contributed 7.3% to the country’s GDP in 2023, is projected to account for 13% by the end of the decade, fueled by urbanization, rising incomes, and government-backed initiatives such as ‘Housing for All’ and the Real Estate Regulatory Authority (RERA).
Commercial real estate is leading this expansion, with office leasing activity reaching 71.9 million square feet in 2024, primarily driven by IT, banking, financial services, insurance (BFSI), and multinational corporations. The segment is forecasted to maintain a strong compound annual growth rate (CAGR) of 15.4% through 2030. Major metropolitan hubs such as Bengaluru, Delhi-NCR, and Mumbai are spearheading this surge, while Hyderabad and Pune are emerging as key players. The rise of Global Capability Centres (GCCs), hybrid work models, and coworking spaces are further fueling demand.
A significant contributor to this growth is the interior fit-out industry, which is projected to expand from Rs 277 billion in 2023 to Rs 805 billion by 2030, reflecting a CAGR of 16.5%. “The office fit-out sector is expected to grow at a CAGR of 16% over the next five years, driven by multinational corporations and high office space absorption in the IT, BFSI, and e-commerce sectors,” said Tanvi Shah, Director and Head of CareEdge Advisory and Research. The shift toward sustainable and tech-enabled designs and hybrid workspace solutions is reshaping modern office environments.
India’s urban population, set to reach 600 million by 2030, will drive demand for flexible and customized workspaces, particularly in Tier 1 and Tier 2 cities. The government’s focus on innovative city initiatives and sustainable infrastructure is further expected to boost real estate investments. With a booming commercial sector and evolving workspace needs, India’s real estate industry is poised for transformative growth in the coming years.
