India’s real estate sector is poised for exponential growth, reaching ₹83 lakh crore by 2030, up from ₹40 lakh crore in 2023, according to a report by CareEdge Ratings. Contributing 13% to the national GDP, the sector is driven by urbanization, rising income levels, and government initiatives like 'Housing for All' and the Real Estate Regulatory Authority (RERA).
The commercial real estate sector is also witnessing robust expansion, with office leasing reaching 71.9 million sq. ft. in 2024, led by IT, BFSI, and multinational corporations. Major metropolitan cities such as Bengaluru, Delhi-NCR, and Mumbai spearhead this growth, with Hyderabad and Pune emerging as key hubs. The rise of Global Capability Centres (GCCs), hybrid work models, and co-working spaces is further fueling this demand.
Additionally, India’s interior fit-out market—essential to commercial real estate—is expected to grow from ₹277 billion in 2023 to ₹805 billion by 2030, at a strong CAGR of 16.5%. Trends such as green fit-outs, technology-integrated designs, and hybrid workspace solutions are reshaping modern office environments. With India’s urban population projected to reach 600 million by 2030, demand for customized office spaces, especially in tier 1 and 2 cities, will continue to surge.
According to Tanvi Shah, Director and Head of CareEdge Advisory and Research, the office fit-out industry will grow at a CAGR of 16% over the next five years, led by multinational investments and rising office space absorption in IT, BFSI, and e-commerce sectors. Government-driven smart city initiatives further support real estate expansion, making sustainability, technology, and people-centric designs key priorities. As demand continues to rise, India’s real estate sector is set to become a major driver of economic growth, offering lucrative opportunities for investors and developers alike.
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