India's Commercial Real Estate in 2025: Key Trends Driving Growth and Expansion
India's commercial real estate trends in 2025 are being shaped by hybrid work models evolving retail spaces and shifting consumer preferences. As businesses adapt to new ways of working and shopping, the demand for flexible workspaces, serviced office space and co-working spaces in India continues to surge.
Rising Demand for Flexible Workspaces
With 58% of businesses choosing flexible office spaces in India and planning to expand their workspace portfolios by 2026, the need for serviced office space is stronger than ever. These spaces provide cost-effective, ready-to-use solutions, enabling businesses to scale efficiently in a dynamic landscape.
Emerging Commercial Hubs Beyond Metros
The growth of co-working spaces in India's Tier-2 and Tier-3 cities is accelerating as locations like Pune, Kochi and Chandigarh establish themselves as top emerging business hubs in India. These cities, offer affordable real estate, modern infrastructure and skilled workforce. They currently host over 140 co-working spaces, with office space projections exceeding 100 million square feet in the next five years.
Surging Demand for Class A Office Spaces
The office space demand remains robust, especially Class A office space in India. Established IT hubs such as Bangalore, Hyderabad and Pune continue to attract businesses, with leasing activity expected to hit 50 million square feet in 2025 which is 15% year-over-year growth. Class A office space demand in India is rising as companies prioritise premium, well-connected locations to attract talent and drive innovation.
Transforming the Retail Real Estate Market
The retail real estate market in India is undergoing significant change to cater to experiential shopping trends. High street leasing expanded by 18% in 2024, with foreign brands accounting for 30% of leasing in Grade-A malls. The shift towards pop-up stores and omni channel strategies is redefining physical retail as a dynamic customer engagement space.
Industrial and Warehousing Boom
The industrial real estate trends in India are being shaped by the e-commerce warehousing demand, leading to rapid warehouse demand. By 2027, warehouse demand is expected to reach 1.2 billion square feet, reflecting a 12.5% year-over-year increase. E-commerce is driving warehouse expansion in India, making logistics and supply chain real estate crucial for businesses. Class A facilities near transportation hubs are streamlining supply chains and optimising costs, enhancing efficiency across industries.
The Future of Commercial Real Estate in India 2025
Adapting to these commercial real estate trends in 2025 is essential for businesses seeking long- term success. With PAN-India expertise, CIRIL offers strategic solutions across commercial property investment, including office spaces, retail units and industrial properties. Whether in metropolitan cities or Tier-2 and Tier-3 city's real estate growth areas, CIRIL provides customised solutions to support business expansion in 2025 and beyond.
For expert guidance on commercial real estate solutions, partner with CIRIL today.
