The outlook for investing in commercial real estate in India appears to be bright as 2025 draws near. The market is predicted to increase from USD 40.71 billion in 2024 to USD 106.05 billion in 2029, creating an excellent opportunity for investors interested in developing trends and regions. Increasing remote working, changing customer patterns, and other technical advancements continue to shape demand for various forms of commercial property.
In this sense, investors are more focused on sustainability and adaptability, making it critical to pick places that not only promise high returns but also match with changing trends. India, a major commercial real estate investment destination with abundant development potential, is expected to strengthen various viable investment areas by 2025.
- Delhi-NCR
Delhi-NCR, especially Noida, is a rapidly growing commercial real estate investment market. Infrastructure development in the region, especially the upcoming Jewar Airport, which will give a boost to economic activities and increase demand for offices and retail shops, makes it very attractive. Good connectivity through major roads and metro lines.
Rental income generation potential is huge, and thus, an attractive offer for investors in the commercial real estate space. As per projections, the new retail supply in Delhi NCR is going to be approximately 4.3 million sq ft by 2025, out of which 81% is supposed to be located in the suburbs.
This retail space flood means that there would be a huge demand in the area from both worldwide brands and domestic merchants, hence this would be a proper destination for investment in commercial. Retail lease activity was 0.51 million sq ft in H1 2024, demonstrating market characteristics that are strong enough to last into 2025.
- Bengaluru
Bengaluru is a commercial real estate powerhouse, thanks to its thriving IT industry and startup culture. It attracts significant investment in office space and technology parks due to its world-class infrastructure and strategic position. Whitefield and Koramangala are especially hot, which gives great returns and occupancy of commercial real estate.
By September 2023, it is supposed to account for 27% of the total Grade A office production in the top markets in India; demand is also said to have remained relatively stable despite slight fluctuations in the leasing activities. Total absorption office for the city was at 41.97 million square feet as at 2023, so the city of Bengaluru takes on a crucial role in commercial property investment into 2025.
- Pune
There is an improvement in Pune with strong economic growth and improving IT parks; such properties might be well positioned here to go for commercial property investment, its strategic position from Mumbai, and also with a startup ecosystem thriving. Commercial property investment in Pune in the prime year 2025 would largely lie in high-demand districts, such as Hinjewadi and Kharadi.
The office space in Pune has increased manifold from the past few years; as far as the Grade A offices supplied in major cities are considered, it would take up almost 11%. This growth curve is as a result of the wave of new innovations targeting the growing demand both locally and internationally.
- Hyderabad
Hyderabad has emerged as one of the leading rising commercial real estate markets with its strong IT infrastructure and an amiable business environment. Growth curves can be explained by the current investment in technology parks and the ongoing development of apartments to house the workforce’s steady increase. The best places to invest in commercial real estate with high returns are places like HITEC City.
Around 15% of Grade A office supplies come from Hyderabad. And, the leasing activity is led by the continuous demand from non-IT MNCs and GCC companies. So, Hyderabad remains a place where investors want to come and invest in commercial real estate, as more companies look for premium office space.
- Noida Expressway
Noida Expressway, in recent times, has come to be one of the favourite places for investment in commercial real estate. Due to large offices of various companies, a 40% increase in commercial space demand has been seen for the past five years here. Properties like Fairfox EON and Bhutani Avenue 133 provide excellent facilities, a prime location, and substantial returns on investment.
The region will continue to attract attention due to its close proximity to Delhi and its growing infrastructure. Therefore, further increase in commercial real estate development is anticipated for Noida Expressway into 2025 as businesses want to establish themselves here more and more.
- Thane
In the MMR, Thane is emerging as a potential alternate location for commercial real estate investments. Multinational corporations are attracted to the area because of its improved connectivity and degree of urbanization, which makes it cost-effective office space. The construction of IT parks has now made Thane a feasible choice for investors looking to make long-term returns in commercial real estate.
With the more favourable location, it is evident that compared to Mumbai, the number of companies willing to take on rental deals is increasing. The rents are not that expensive; thus, it will continue being one of the emerging sites for future commercial property investments in Thane. Some of these locations would provide fantastic prospects for investing in commercial real estate in India going into 2025.
There are several, each with specific benefits like the creation of key infrastructure in vibrant business ecosystems that offer extremely high returns on investment. Some of these should be taken into consideration before making any further decisions in this ever-changing commercial real estate market.
These all become fantastic opportunities for investing in commercial real estate in India as we move to 2025. Each one of these has special advantages, from the building of important infrastructure to working on a thriving business environment, which yields incredibly high returns on investment. Some of these should be considered before settling for the next course of action in this dynamic commercial real estate market.
