Mumbai: Gross office absorption in India is expected to cross 80 million square feet in 2025, reaffirming the country's position as a global talent and enterprise hub, a report said on Tuesday, adding that global capability centre (GCC) expansion, in particular, emerged as a powerful driver, consolidating India’s role in the global value chain. 2025 marked a decisive shift from recovery to structural transformation.
The sector demonstrated strong fundamentals across all verticals —residential, commercial, retail, logistics, warehousing, and data centres— driven by policy stability, end-user demand, and India’s sustained economic momentum. “The progress made in 2025 has reaffirmed our belief in the underlying strength of India’s real estate sector. As India moves confidently toward becoming a $1 trillion real estate economy by the end of the decade, the opportunities ahead are both exciting and transformative,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
India’s residential real estate market sustained its upward momentun, with premium and luxury housing emerging as the dominant demand segment. Homes priced above Rs 1 crore accounted for more than half of all sales across major cities, underscoring the shift in affordability, aspiration, and buyer profile. Markets such as Bengaluru, Hyderabad, Chennai, and Delhi NCR recorded double-digit price appreciation, reflecting both scarcity of quality supply and deep buyer conviction.
Developers increasingly focused on premium offerings that prioritise brand assurance, sustainability, privacy, and advanced digital integration. Meanwhile, the affordable housing segment remained constrained by rising input costs and limited financing, signalling the need for targeted policy interventions to restore balance across the income spectrum.
Tier 2 and 3 cities continued to expand their share of residential activity, supported by infrastructure upgrades, rising household incomes, and proactive state-level reforms. Their growing influence marks one of the most important structural shifts of the decade, said the report.
Retail real estate saw a resurgence in 2025, with high streets and malls pivoting to experiential formats that enhanced footfalls and conversion. In 2026, the commercial office sector is expected to maintain its momentum, with GCCs, technology firms, and global enterprises solidifying India’s status as a strategic operations hub. “Flexible workspaces will continue evolving into more specialised and sector-driven formats. Tier-2 and Tier-3 markets will play an expanding role in both residential and commercial growth, supported by infrastructure delivery and economic decentralisation,” said the report.
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