India Commercial Construction Market Size

Statistics for the 2023 & 2024 India Commercial Construction market size, created by Mordor Intelligence™ Industry Reports. India Commercial Construction size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.

Market Size of India Commercial Construction Industry

Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 11.50 %
Market Concentration Medium

Major Players


*Disclaimer: Major Players sorted in no particular order


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India Commercial Construction Market Analysis

The market for Commercial Construction in India is estimated to be valued at more than USD XX billion and is estimated to grow at a CAGR of more than 11.5% during the forecast period.

Efforts are expected to continue to ease the regulations, multiply the organizations, amend the Foreign Direct Investment policies and legislations to generate flow of funds for the upcoming infrastructure with commercial construction forming a major focus. This is also evident from the large scale propaganda of the Government of India to focus on a 5 Trillion USD economy, launching of various investment initiatives by the Finance Ministry viz. innovative financing vehicles such as Infrastructure Debt Funds (IDFs), Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), mainstreaming of Public Private Partnerships (PPPs) across industry through viability gap funding, and establishment of the National Investment and Infrastructure Fund (NIIF), which would be key initiatives for stabilizing industry's output post COVID-19 outbreak.

A brilliant example is the DLF-GIC Joint venture, a private Real Estate Investment Trust (REIT), to invest around USD 650 Million for the development of a 6.8 million square feet information technology park in Chennai, and the country's largest mall in Gurugram, next to Cybercity, having 2.5 Million sq. feet built up area. Further, Global private funds, including Blackstone Group, Canada Pension Plan Investment Board (CPPIB), APG Asset Management, Xander Group and GIC, have started investing in the retail sector to diversify their investment portfolios in the country and more funds are eyeing such alliance opportunities. To add, in one of India's biggest transactions to help build a property investment platform, private equity major Warburg Pincus entered a USD 1 billion alliance with Mumbai-based developer Runwal Group to fund retail-led mixed-use projects across the country. Companies exiting China and entering Indian market, in search of retail and office space, post COVID-19 outbreak, would be a bonus in the economic slowdown.

Market experts are expecting around 15% decline in the office space absorption, complementing the fact that 30% decline in the same has been recorded in the first three months of this year, 2020, for Grade A segment of office built up space, across major metropolitans, though net office space absorption is still expected to be higher than previous year, backed by significant pre-booking or pre-leasing of space by occupiers. Labor shortages could be another issue post lockdown, as most of the labor have returned to their villages and it would be very dicey, if construction, the second largest employer, after Agriculture, faces tough time fetching minimum number of laborers at the construction sites, despite endless initiatives by the govt.

India Commercial Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)