The rise and rise of Indian commercial real estate

The latest IMF growth forecast declares India as the fastest growing major economy, ahead of China. India’s GDP is set to accelerate after the transitory shocks of demonetization and GST.

As the service sector is one of the primary drivers of this growth, urban commercial centers will see the concentrated effects of this accelerated GDP.

Commercial hubs like Bangalore, Hyderabad, Pune, Mumbai, and Delhi NCR are at the heart of the upcoming boom, catering to demand across a range of sectors. Office space vacancy is at an all-time low in many of these cities, between 3-7%, sparking a rush for space that is expected to cross 700 million sq ft of absorption in Grade-A office space by 2022. With its higher capital intensity, commercial property has emerged as one of the most lucrative investment destinations, offering opportunities to profit from sectors like co-working spaces, the fastest growing asset class within real estate.