Commercial realty’s strong performance in 2023 sets the pathway for prosperity in 2024
India’s real estate sector has been an essential contributor to the country’s economic development, especially in a year marked by resilience and growth. The sector has demonstrated sustained growth and adaptability, highlighting its crucial role in steering India’s economic progress towards prosperity and innovation. The commercial realty market, which includes office spaces and retail developments, showed significant growth trends throughout the year. The commercial realty sector is expected to continue growing in office leasing, supported by India-facing businesses and Global Capability Centers (GCC).
The office space leasing activity showed robust demand and healthy growth, resulting in a 33 percent increase in gross office space leasing during Q3 2023 across the top 9 metro cities. This indicates that occupiers have confidence in the market. The market analysis reveals that American and domestic firms leading the office space absorption during the July to September quarter in the office space sector have performed exceptionally well, outperforming the expectations set for 2023.
The biggest leasing deals were made by BFSI companies, followed by technology, engineering, and manufacturing companies. Bengaluru led the surge in demand, followed by Delhi-NCR, Chennai, and Hyderabad. These cities are expected to continue driving absorption in the coming quarters.
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Foreign Direct Investment (FDI) saw a significant shift towards the Asia-Pacific region after the pandemic, according to UNCTAD. While global FDI declined by 12.4% in 2022, the Asia-Pacific region saw a remarkable 8% increase, accounting for a significant 55% share of global inward FDI. The
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