commercial real estate growth post-2024 in India

Explore how India’s commercial real estate sector is growing post-2024. Learn about key trends, market drivers, and what the future holds for investors.

Introduction

The Indian commercial real estate (CRE) sector has entered a phase of strong revival and transformation post-2024. After navigating challenges posed by the pandemic and global uncertainties, the industry is now riding a new wave of demand driven by economic growth, infrastructure development, return-to-office trends, and the rise of tier-2 and tier-3 cities.

This blog explores the key drivers, trends, and future outlook of commercial real estate growth in India after 2024.

1. Strong Economic Recovery Boosting Demand

Post-2024, India’s economy has shown consistent GDP growth backed by increased manufacturing, services, and export activities. Sectors like IT/ITeS, banking, finance, logistics, and retail have expanded their footprint, leading to a surge in demand for commercial spaces such as:

Office complexes
Warehousing and logistics hubs
Retail spaces and malls
Data centres and industrial parks

This economic upturn is directly contributing to the robust growth of the CRE sector.

2. Return to Office & Hybrid Work Models

While remote work dominated post-pandemic years, 2024 onwards has seen a significant return to office (RTO) movement. Major corporates and startups are adopting hybrid work models that balance remote flexibility with physical collaboration. As a result:

Office occupancy rates have improved in cities like Bengaluru, Pune, Hyderabad, and Gurugram.
Demand for modern, tech-enabled workspaces and co-working spaces is on the rise.
Grade A office spaces with sustainability certifications (LEED, IGBC) are highly sought after.

3. Expansion Beyond Tier-1 Cities

Tier-2 and tier-3 cities such as Indore, Bhubaneswar, Lucknow, Coimbatore, and Jaipur are emerging as commercial hubs due to:

Government investment in Smart Cities and infrastructure
Improved connectivity via new highways and airports
Cost advantages for businesses and employees
Rising local consumption and workforce availability

This geographic shift is opening up fresh investment opportunities in retail, logistics, and office spaces.

4. Boom in Warehousing and Logistics Real Estate

E-commerce, 3PL (third-party logistics), and manufacturing expansion under Make in India have led to:

A surge in demand for Grade A warehouses near metro peripheries and highways
The rise of multi-level warehousing in high-demand urban zones
Increased foreign investment in logistics parks and fulfillment centers

Post-2024, warehousing has become one of the fastest-growing segments of Indian CRE.

5. Retail Revival and Mall Development

Retail real estate, which was hit hard during the pandemic, is now witnessing a comeback due to:

Surge in footfalls at malls and shopping complexes
Rising demand for organized retail spaces in tier-2 cities
Growth of lifestyle and entertainment-centric commercial developments

New retail formats, such as open-air plazas and experience zones, are attracting both customers and investors.

6. Tech Integration and Smart Commercial Spaces

Digitization is reshaping commercial properties. Developers are integrating:

Smart building management systems (BMS)
IoT-based energy monitoring
Automated access control and workspace booking systems

These features not only improve operational efficiency but also meet the expectations of a tech-savvy workforce.

7. Foreign Investment and REIT Expansion

India’s commercial real estate market continues to attract global investors due to:

Stable returns and rental yield
Transparent regulatory frameworks post-RERA
Rise of REITs (Real Estate Investment Trusts), offering fractional ownership in Grade A commercial assets

More REITs are being listed post-2024, making CRE investments accessible to retail investors.

8. Sustainable and Green Commercial Buildings

Sustainability is no longer optional. Developers are focusing on:

Energy-efficient designs
Green building certifications
Water conservation and waste management systems

Post-2024, green commercial buildings are not just regulatory compliant but also in higher demand due to ESG (Environmental, Social, and Governance) mandates by corporates.

9. Flexible Workspaces and Co-Working Boom

The co-working market is expanding rapidly:

Startups, freelancers, and even corporates prefer plug-and-play models
Demand is rising in smaller cities due to reverse migration
Operators like WeWork, Awfis, and Smartworks are scaling rapidly

Flexible spaces are now integral to the CRE growth story.

10. Government Policies and Infra Push

The government’s focus on infrastructure and real estate reform is driving growth:

PM Gati Shakti plan for logistics connectivity
National Monetisation Pipeline boosting commercial land leasing
Single-window clearances and FDI relaxation in CRE

Such initiatives are accelerating project execution and investor confidence.

Conclusion: Future Outlook of CRE in India

The future of commercial real estate in India post-2024 looks promising. Driven by economic expansion, urbanisation, policy support, and new work cultures, the sector is expected to witness a compound annual growth rate (CAGR) of 10–15% over the next five years.