India's Leap Towards Sustainable & Innovative Workspace Design
- Industry News
- March 13, 2024

India’s commercial real estate sector is witnessing robust growth driven by strong leasing demand, institutional investment, and diversification into new asset classes like logistics and data centres. The expansion of tier 2 and 3 cities, along with rising appetite for Grade-A office spaces fueled by IT/ITeS and GCCs, marks a shift towards sustainable, income-generating portfolios underpinned by REITs and digital reforms.
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Location remains a key determinant of value in India’s commercial real estate market. From metro connectivity and high-street retail to mixed-use hubs and micro-markets, businesses and developers are shifting their focus to proximity, access, and ecosystem-driven planning to maximise rental yields, foot traffic, and long-term growth.
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India’s commercial real estate dominated investment activity in Q2 2025, accounting for 62% of total deal value. With $1.3 billion in transactions, including IPOs and QIPs, institutional interest surged in income-generating assets. The rise of SME REITs and the anticipation of India’s largest REIT issue signal deeper capital market integration.
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Indian companies now account for 46% of office leasing in India, up from 35% pre-2020, driven by BFSI, manufacturing, and tech sectors. A JLL report highlights record-high leasing in 2024 and Q1 2025, with Delhi-NCR and Mumbai leading the surge. Leasing volumes may cross 100 million sq. ft soon.
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The Mumbai Metropolitan Region Development Authority (MMRDA) has allotted a 5,500 sq m plot in BKC to the National Stock Exchange (NSE) for ₹757.9 crore. The land will support NSE’s expansion with a new office building, highlighting growing demand in Mumbai’s commercial real estate sector.
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Kochi’s commercial real estate sector is expanding rapidly, with office space reaching 17 million sq. ft. and retail space growing at a 9% CAGR. Technology firms drive office leasing, while fashion and lifestyle brands lead retail demand. Government-backed initiatives and sustainability efforts position Kochi as a rising business hub.
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