The Indian commercial real estate sector has been steadily growing with advancements in office spaces and first-rate facilities, desirable locations, a friendly business atmosphere, and other factors. From towering office buildings in urban centers to industrial parks on the outskirts of cities, commercial real estate developments house a wide range of sectors, including retail, corporate offices, hotels, logistics hubs, and manufacturing units.
As the second-largest employment generator in the country, commercial real estate directly contributes to economic growth with an 18.7% compound annual growth rate (CAGR). It supports job creation at various stages, from construction workers and architects in the building phase to the thousands of employees who work in office complexes, retail stores, and logistics centers.
As per a joint report by Knight Frank and the National Real Estate Development Council, India’s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%. With a growing share of real estate in the GDP, it would be backdropped by increasing industrial activity, enhanced levels of income as well as urbanization. Commercial real estate thus forms an integral part of economic infrastructure, an important employer, and a business generator for cities and emerging markets.
Ajendra Singh, Vice President, Spectrum@Metro, said, “Commercial real estate has been a driving force behind the transformation of India’s economic landscape. As businesses expand and new sectors emerge, the need for cutting-edge commercial spaces is greater than ever. construction activities absorb a large number of skilled and unskilled workforce. Hence, the sector not only powers business growth but also fuels job creation at every level.”
Harsh Gupta, CEO, Sundream Group, added, “The commercial real estate sector fuels employment at multiple levels. Beyond this, the sector plays a pivotal role in enhancing the local infrastructure, impacting the community’s quality of life. With the rise in demand for modern and quality office spaces, strategic investments in commercial real estate can transform local economies by attracting both global and domestic businesses, driving economic development at both regional and national levels.”
Moreover, as per Crisil reports, the commercial office space demand is set to grow by 8-10% in the current and upcoming fiscal years, underscoring how global capability centres are eyeing India’s large talent pool and competitive rentals, as well as healthy demand from domestic sectors. In addition, the growing demand for green buildings and sustainable practices is driving growth in the real estate sector, especially in office and retail segments.
Sanchit Bhutani, Managing Director of Group 108 said, “The commercial real estate business is expanding, with office and retail spaces witnessing great demand in this situation. By creating employment, attracting businesses, and boosting ancillary services, commercial real estate contributes to a thriving economic ecosystem. Notably, Noida-Greater Noida perfectly meets this demand in Delhi-NCR with its robust infrastructure and proximity to global markets. Further, the Noida-Greater Noida Expressway has boosted the demand for Grade A office spaces, contributing to the overall growth of Noida. Thus, our projects cater to this demand, embodying our commitment to providing modern and well-connected spaces, ensuring that convenience and connectivity remain at its core.”
Sunil Kumar Jindal, Chief Executive Officer & Director, ManSan Group, said, “Commercial real estate leads local economic revival. While, strategic investment in offices and retail centers spurs businesses and, therefore, influences the entire economy as a whole. Well-designed commercial real estate spaces with modern infrastructure and strategic locations become activity hubs supporting tenants and an entire economic network. Thus, these investments create vibrant and connected communities where each sector strengthens in response to commercial real estate growth.”
Thus, commercial real estate is undeniably a powerful engine driving India’s economic growth and job creation. With advancements in infrastructure, strategic locations, and modern facilities, it boosts business expansion and attracts both global and domestic enterprises.