Transforming Commercial Real Estate in India: Trends and Statistics Shaping the Industry

Koushik Majee

11 months ago

1628 Views

In recent years, the Indian real estate market has undergone a significant transformation. Some of the elements that have led to the revolutions of India's real estate industry in recent years include government reforms, technology improvements, evolving consumer preferences, evolution in the work culture, and the pandemic-inspired shift towards remote employment. These are only a few of the reasons.


This article will provide a more in-depth look at the trends as well as the statistics that are affecting the commercial real estate business in India, which is currently undergoing fast expansion., driven by various factors such as government reforms, technological advancements, changing consumer preferences, and the pandemic-induced shift towards remote work. In this article, we will delve deeper into the trends and statistics that are shaping the commercial real estate sector in India.


To begin with, let's take a look at the key drivers of change in the Indian commercial real estate market.


Key catalysts that boost the change in commercial real estate:


Starting from reforms of different government policies to changes in customers' preferences, there are some key factors that have affected the commercial real estate market in India. Let us explore some factors.


Government Reforms:


Over the past few years, the government of India has enacted a number of changes intended to increase the flow of foreign investment into the country's real estate market. Some major measures that have helped the business include the Real Estate Regulatory Authority (RERA) Act, the Goods and Services Tax (GST), and loosened restrictions on foreign direct investment (FDI).


Technological Advancements:


The Indian commercial real estate market has been profoundly influenced by the rapid development of technology in recent years. The introduction of technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and Virtual Reality (VR) has enabled the industry to increase the effectiveness of building management, improve tenant experience, and make more informed decisions.


Changing Consumer Preferences:


After the huge impact of covid-19 on all the industrial aspects, there has been a change in consumer expectations, with a higher need for remote collaboration tools and more flexible work environments. This has increased the need for shared office spaces and remote workplace solutions like virtual offices.


Some Noteworthy Statistics:


Now, let's take a look at some statistics that highlight the changing landscape of commercial real estate in India.


Rise of Co-working Spaces:


The demand for flexible workspaces has been on the rise in India and is increasing rapidly, especially after the corona pandemic. According to Savills, in 2022, the total leasing of co-working space has reached 12 million square feet, accounting for roughly 20% of the total leasing. This is a significant increase from 2019 when it accounted for just 14% of all office leasing in India.


Increased Investments in Commercial Real Estate:


In FY 2018–19, the real estate sector contributed roughly 7% of India's GDP; by 2025, that percentage is expected to reach about 13%. This indicates that the Indian commercial real estate industry is growing at a rapid pace. Notwithstanding the pandemic-induced slowdown, commercial real estate investments totaling USD 6.3 billion were made in 2020, according to a Knight Frank India report. According to the research, the office segment will account for 50–55 percent of all investments, which are forecast to amount to USD 7 billion in 2021.


Growth of E-commerce and Logistics:


The growth of e-commerce in India has led to a surge in demand for logistics and warehousing spaces. According to a report by ANAROCK, this increase in e-commerce caused a significant surge in demand in the warehousing segment witnessed. The report also suggests that the e-commerce and logistics sectors are expected to drive the demand for warehousing spaces in the coming years.


Emphasis on Sustainability:


Sustainability and environmentally friendly architecture are becoming increasingly important to the commercial real estate business in India. In 2020, the overall certified green footprint in India reached 1.8 billion square feet, with the office sector accounting for 85% of the certified green buildings, as stated in research compiled by JLL India.


Impact of the Pandemic:


The remote work trend brought on by the epidemic has significantly impacted the Indian commercial real estate market. The office vacancy rates in the top seven cities in India jumped from 13.1% in Q1 2020 to 14.8% in Q1 2021, according to Colliers International research. According to the survey, a shift to hybrid work arrangements is projected to reduce demand for office space in the near future.


Key takeaways:


In conclusion, a variety of reasons, including governmental changes, technical improvements, shifting customer preferences, and the move towards remote work brought on by the epidemic, are responsible for the evolving commercial real estate market in India. Some of the major trends and figures influencing the market are the rise of co-working spaces, rising investments in commercial real estate, expansion of e-commerce and logistics, emphasis on sustainability, and the effects of the pandemic.


Businesses and investors must stay current on the most recent trends and changes as the commercial real estate industry in India develops. The industry is positioned for growth and innovation in the upcoming years thanks to the implementation of governmental reforms, the adoption of new technology, and the emphasis on sustainability.




Smart Homes: A Game-Changer for Real Estate in India - Trends, Statistics, and Future Implications

 

A Detailed Guide on Real Estate Investment Trust (REITs) and Its Potential for Investors

 

Impact of Government Policies on the Real Estate Sector in India

 

Why are homes in Bengaluru so costly?

 

How much increase in Home Loan interest rate will impact investment in new property?

 

How to buy new 80 Lakhs 3 BHK flat in Godrej Park Retreat in Bangalore with just 10 Lakhs?

 

I am earning 1.5 lakhs month. Should I buy 2 BHK flat with loan or invest in stocks?

 

Rising Property rental prices in Bengaluru and its effects



Koushik Majee

Supply Chain Expert at INDIA

11 months ago

Featured Blogs
2516 ( 0 Comments )
19
19
AvatarAnwesha Chourasia
Read more
1205 ( 0 Comments )
0
1
AvatarAnwesha Chourasia
Read more
1340 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1167 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
2296 ( 0 Comments )
0
0
AvatarAnushka Trivedi
Read more
2845 ( 0 Comments )
1
1
AvatarAnushka Trivedi
Read more
2420 ( 0 Comments )
1
1
AvatarPratiksha Sharma
Read more
2141 ( 0 Comments )
0
0
AvatarPratiksha Sharma
Read more
2755 ( 0 Comments )
1
0
AvatarPratiksha Sharma
Read more
2460 ( 0 Comments )
1
1
AvatarPratiksha Sharma
Read more
1580 ( 0 Comments )
0
0
AvatarPratiksha Sharma
Read more
1176 ( 0 Comments )
1
1
AvatarPratiksha Sharma
Read more
2257 ( 0 Comments )
1
1
AvatarPratiksha Sharma
Read more
2288 ( 0 Comments )
1
1
AvatarPratiksha Sharma
Read more
1452 ( 0 Comments )
1
4
AvatarPratiksha Sharma
Read more
Blog Banner
3 Oct, 2023Why Singapore Condo prices are so high?

Sivasagar, Singapore

1578 ( 0 Comments )
1
1
AvatarPratiksha Sharma
Read more
1464 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
2221 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1474 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1448 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1256 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
1806 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
1370 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
2116 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1519 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
2659 ( 0 Comments )
2
1
AvatarAnwesha Chourasia
Read more
2584 ( 0 Comments )
3
0
AvatarAnwesha Chourasia
Read more
1394 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1378 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1781 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
2469 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1449 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
2675 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1480 ( 0 Comments )
2
1
AvatarAnwesha Chourasia
Read more
2614 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
2396 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
3005 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1397 ( 0 Comments )
2
0
AvatarAnwesha Chourasia
Read more
1287 ( 0 Comments )
2
1
AvatarAnwesha Chourasia
Read more
1429 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
2430 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
2540 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
1247 ( 0 Comments )
3
0
AvatarAnwesha Chourasia
Read more
1276 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1429 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
1270 ( 0 Comments )
3
0
AvatarAnwesha Chourasia
Read more
Blog Banner
News
7 June, 2023Top 20 Best Property Builder in Kerala

Thiruvananthapuram, India

938 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
2545 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
1418 ( 0 Comments )
2
0
AvatarAnwesha Chourasia
Read more
1652 ( 0 Comments )
2
1
AvatarAnwesha Chourasia
Read more
Blog Banner
Investment
5 June, 2023Top 10 Builders in Kanpur

Kanpur, India

2546 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
1971 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
1238 ( 0 Comments )
1
0
AvatarAnwesha Chourasia
Read more
1211 ( 0 Comments )
6
1
AvatarAnwesha Chourasia
Read more
1150 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1169 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
Blog Banner
News
5 June, 2023Top 10 Builders in Bengaluru

Bengaluru, India

1126 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
1132 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
1289 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
1267 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
1207 ( 0 Comments )
4
1
AvatarAnwesha Chourasia
Read more
1360 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more
1274 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1187 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1753 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
Blog Banner
Blogs
27 May, 2023What is Tier 2 Cities in India?

Kanpur, India

2758 ( 0 Comments )
3
1
AvatarAnwesha Chourasia
Read more
Blog Banner
Blogs
27 May, 2023What is Tier 1 Cities in India?

Bengaluru, India

1197 ( 0 Comments )
3
0
AvatarAnwesha Chourasia
Read more
1996 ( 0 Comments )
5
2
AvatarAnwesha Chourasia
Read more
1423 ( 0 Comments )
4
0
AvatarAnwesha Chourasia
Read more
1407 ( 0 Comments )
3
0
AvatarAnwesha Chourasia
Read more
1329 ( 0 Comments )
2
1
AvatarAnwesha Chourasia
Read more
1446 ( 0 Comments )
4
1
AvatarAnwesha Chourasia
Read more
1684 ( 0 Comments )
1
1
AvatarKoushik Majee
Read more
1227 ( 0 Comments )
1
1
AvatarKoushik Majee
Read more
1384 ( 0 Comments )
2
0
AvatarKoushik Majee
Read more
1307 ( 0 Comments )
1
1
AvatarKoushik Majee
Read more
1137 ( 0 Comments )
1
0
AvatarKoushik Majee
Read more
1261 ( 0 Comments )
1
1
AvatarKoushik Majee
Read more
3376 ( 0 Comments )
1
1
AvatarKoushik Majee
Read more
1279 ( 0 Comments )
2
0
AvatarKoushik Majee
Read more
2226 ( 0 Comments )
4
1
AvatarKoushik Majee
Read more
2672 ( 1 Comments )
3
1
AvatarKoushik Majee
Read more
2122 ( 0 Comments )
1
0
AvatarKoushik Majee
Read more
2451 ( 0 Comments )
1
1
AvatarKoushik Majee
Read more
1336 ( 0 Comments )
0
0
AvatarAnwesha Chourasia
Read more
1363 ( 0 Comments )
1
0
AvatarKoushik Majee
Read more
1410 ( 0 Comments )
2
0
AvatarKoushik Majee
Read more
Blog Banner
News
25 Mar, 2023Why are homes in Bengaluru so costly?

Bengaluru, India

1236 ( 0 Comments )
1
1
AvatarAnwesha Chourasia
Read more

© Copyright 2024, All Rights Reserved by HousePerSqft