India’s Office Market Expected To Reach 1.2 Billion Sq Ft By 2030, Report

According to the report, India’s office real estate market is expected to reach 1.2 billion square feet by 2030.

India's office real estate segment is recovering fastest from the impact of the pandemic, with markets in the seven cities expected to reach 1.2 billion square feet by 2030, it will be valued at ₹13000 billion based on the current pricing.
In the post-covid world, the flex workspace segment is expected to evolve into the mainstream occupier segment with owner-operator partnerships creating premium office assets.

As we move towards a more distributed working model, occupants will consider strategies to not only make their portfolios more resilient but also to tap into the talent pool arising in urban centers.
The flexible office space segment will play an important role in supporting occupants' growth strategies due to the changing dynamics of portfolio optimization and employee needs. As a result, the flexible market is expected to double in size by 2025 in seven major Indian cities to approximately 75 million square feet and surpass the 100 million square foot mark by 2030.

"With growth momentum, India's Grade A office market across seven major cities is expected to reach more than 1 billion square feet by 2026 and touch 1.2 billion square feet by 2030. India will continue to be the leader in engineering and construction outsourcing, says the Regional Managing Director of a leading real estate consultancy.

In recent quarters, India has experienced a rapid and sustained recovery in the office and residential segments. With investor confidence returning, as evidenced by the increase in total institutional investment in the Indian real estate segment, which is forecast to grow exponentially over the next few years.

India's Grade A commercial offices in the top seven cities have a green certification rate of 42%. The penetration of green-certified buildings is expected to surpass the 50% mark globally in the next decade. The new supply is likely to be  70-75% green even as older projects seek to improve and reduce their carbon footprint.

With occupants at the forefront of the green agenda and willing to pay a premium for such green buildings, the occupants' affirmative action toward net-zero carbon will boost the office segment's aim to establish high durability and net-zero carbon.

The rise of e-commerce and "delivery within 15 minutes" has been a powerful impetus for the development of urban logistics. Multi-storey warehouses will also be the next step in logistics for efficient land use at last-mile delivery locations.

On-Demand warehousing provides flexibility and agility for direct-to-consumer sellers to take advantage of warehousing or shipping services as needed. With an omnichannel focus, customers are expecting new alternatives such as buying online and receiving in-store or shipping from the store.