India Office Real Estate Market Size
|Study Period||2018- 2028|
|Base Year For Estimation||2022|
|Market Size (2023)||USD 26 Billion|
|Market Size (2028)||USD 91.08 Billion|
|CAGR (2023 - 2028)||28.50 %|
*Disclaimer: Major Players sorted in no particular order
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India Office Real Estate Market Analysis
The India Office Real Estate Market size is expected to grow from USD 26.00 billion in 2023 to USD 91.08 billion by 2028, at a CAGR of 28.50% during the forecast period (2023-2028).
The second wave impacted market sentiments, with several occupiers taking a cautious approach to ongoing business uncertainties. However, several deals negotiated before 2021 were completed, and the vaccination drive is helping corporations gain a better understanding of return-to-work dates.
Occupiers are likely to focus more on integrating traditional leased spaces, remote working options, and flexible spaces within their real estate portfolios to develop a hybrid workplace model. The plan to decentralize the workplace and provide more locations to satisfy the needs of a more mobile workforce is anticipated to be aimed at cost and portfolio optimization.
India Office Real Estate Market Trends
This section covers the major market trends shaping the India Office Real Estate Market according to our research experts:
Demand for Office Space Increased in 2021
Gross leasing went down in Q2 2021 compared to Q1 2021 because of the second wave of COVID-19 and new rules in all major cities.However, on an annual basis, office leasing grew by 55.1% in Q2 2021 compared to Q2 2020.
The demand for space is increasing across the IT, healthcare, e-commerce, and logistics sectors. To make the market more accessible to small and retail investors, the Securities and Exchange Board of India (SEBI) reduced the minimum application value for Real Estate Investment Trusts (REITs) from INR 50,000 (USD 705.21) to INR 10,000–15,000 (USD 141.04–USD 211.56) in July 2021. According to the Investment Information and Credit Rating Agency of India Limited (ICRA), Indian companies are likely to raise more than INR 3.5 trillion (USD 48 billion) through infrastructure and real estate investment trusts in 2022, compared to the USD 29 billion raised in 2020.
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Foreign Investments Plays a Major Role in the Office Real Estate Market
The office market has been driven by growth in business process management and information technology (BPM/IT), banking, financial services, and insurance (BFSI), consulting, and manufacturing.Many new companies are thinking about getting into the Indian market because it has a lot of potential and the FDI rules have been made easier.By 2022, the absorption of Grade-A office space is estimated to exceed 700 million sq. ft., with Delhi-NCR accounting for most of this demand.
Large agreements of 100,000 sq. ft. were expected to be made in Bengaluru in 2021. This was thought to be a big part of what was expected year over year. to be leased. It is expected to be 20–30 units for a 20-30% increase in absorption, while supply is expected to gr20–30eadily by 20-30% Y-o-Y. Strong development in e-commerce and manufacturing and increased demand in emerging Tier I and Tier II cities are estimated to push the absorption of industrial and warehouse space up by 83% to 47.7 million sq. ft. in 2021. The office category drew 71% of all private equity (PE) investments in real estate in Q4 FY21, followed by retail (15%), residential (7%), and warehousing (7%).
India Office Real Estate Industry Overview
The Indian office real estate market is highly competitive, as the sector’s domestic and foreign participants have created a competitive environment. There are many opportunities for small and medium companies in tier 2 cities. Some of the office real estate developers in the country include Indiabulls Real Estate, DLF Ltd., Prestige Estate Projects Ltd., Supertech Limited, and Oberoi Realty, and office real estate consultancy firms include Cushman & Wakefield, CBRE Group, etc.
India Office Real Estate Market Leaders
Indiabulls Real estate
Prestige Estate Projects Ltd
Cushman & Wakefield
*Disclaimer: Major Players sorted in no particular order
India Office Real Estate Market News
- October 2022: Colliers International, a global real estate consulting firm, announced that the major six cities in India (Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune) planned to develop more than 300 million square feet of existing and upcoming commercial office buildings.
- August 2022: Hines Ltd. (the US-based real estate firm) planned to develop an office building comprising 9 lakh square feet of leasable area in Mumbai. In addition, the company has already completed two commercial projects in Gurugram, comprising 1.4 million square feet. Thus, the company is planning to increase its footprint in India by developing commercial projects.
India Office Real Estate Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Report
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Market Overview
4.3 Market Dynamics
4.3.1 Market Drivers
4.3.2 Market Restraints
4.3.3 Market Opportunities
4.4 Technological Innovations in the Office Real Estate Market
4.5 Insights on Government Regulations and Initiatives in the Industry
4.6 Insights on Rental Yields in the Office Real Estate Segment
4.7 Insights on the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy(%)/Vacancy (%))
4.8 Insights on Office Real Estate Construction Cost
4.9 Impact of COVID-19 on the Market
4.10 Porter's Five Forces Analysis
4.10.1 Bargaining Power of Suppliers
4.10.2 Bargaining Power of Consumers/Buyers
4.10.3 Threat of New Entrants
4.10.4 Threat of Substitute Products
4.10.5 Intensity of Competitive Rivalry
4.11 Industry Value Chain Analysis
5. MARKET SEGMENTATION
5.1 By Major Cities
5.1.4 Other Cities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles - Real estate Players *
6.2.2 Cushman & Wakefield
6.2.3 CBRE Group
6.2.5 Panchshil Realty
6.3 Company Profiles - Developers *
6.3.1 Indiabulls Real Estate
6.3.2 DLF Limited
6.3.3 Prestige Estate Projects Ltd
6.3.4 Supertech Limited
6.3.5 Oberoi Realty
6.3.6 HDIL Ltd
7. FUTURE OF THE INDIA OFFICE REAL ESTATE MARKET
8.1 Insights on Capital Flows (Investments in the Office Real Estate Market)
8.2 Pricing Trend Analysis for New Office Building Construction in India
India Office Real Estate Market Research FAQs
How big is the India Office Real Estate Market?
The India Office Real Estate Market size is expected to reach USD 26 billion in 2023 and grow at a CAGR of 28.5% to reach USD 91.08 billion by 2028.
What is the current India Office Real Estate Market size?
In 2023, the India Office Real Estate Market size is expected to reach USD 26 billion.
Who are the key players in India Office Real Estate Market?
Indiabulls Real estate, DLF Limited, Prestige Estate Projects Ltd, Panchshil Realty and Cushman & Wakefield are the major companies operating in the India Office Real Estate Market.
India Office Real Estate Industry Report
Statistics for the 2023 India Office Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Office Real Estate analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.