Will India's total office space surpass 2 billion sq ft by 2047?

New Delhi, Sep 11 (NationPress) A recent report highlights that, fueled by rising institutionalisation, an uptick in demand, and robust economic prospects, India's overall office space is projected to exceed 2 billion square feet by 2047.

The 'Grade A' office sector has seen a remarkable increase, tripling since 2010 to over 800 million sq ft today. This surge is attributed to heightened demand from Global Capability Centres (GCCs) and domestic entities across various sectors, including technology, BFSI, and manufacturing, as per a report from Colliers in partnership with the Confederation of Real Estate Developers’ Association of India (CREDAI).

In the realm of industrial and warehousing, Grade A stock is anticipated to surpass 250 million sq ft by 2025, reflecting significant growth since 2010, driven by advancements in infrastructure, private sector engagement, and evolving consumer preferences.

The report notes that demographic transformations, increasing income levels, and enhanced affordability are contributing factors.

The 2010s saw urban migration driven by the IT sector, resulting in a demand spike for housing in tier I cities. Additionally, the implementation of the Real Estate (Regulation and Development) Act (RERA) introduced essential transparency and accountability into the market.

Despite a decline in housing sales in the wake of the COVID-19 pandemic, the market rebounded strongly, showcasing record-breaking sales figures in recent years.

Over the coming decades, India's median age is forecasted to climb to 30-40 years, coinciding with peak income and consumption levels.

This demographic shift is a pivotal moment for the economy, as a large segment of the workforce enters their prime earning years.

With an expected rise in income and favorable housing policies, annual housing sales could double to 1 million units by 2047, according to the report.

Urbanization is accelerating in Indian cities, with projections indicating that nearly 900 million individuals—or 53% of the population—will reside in urban settings by 2050, up from 37% today.

To support this growth, urban development must extend beyond established tier I cities into smaller tier II and III cities, as well as emerging growth corridors.

“India is not merely enhancing its infrastructure; it is re-envisioning the future of urban living. Despite a 13-14% CAGR increase in budgetary infrastructure allocations over the past 25 years, much more remains to be done, especially in light of rapid urbanization,” stated Vimal Nadar, National Director and Head of Research at Colliers India.

The Indian real estate sector is poised for accelerated, multifaceted growth across various asset classes.

Ongoing government support, along with collaboration among numerous private and public stakeholders, should position India as the third-largest economy by 2030. Moreover, the Indian economy could potentially reach $35-40 trillion by 2047.

Fundamentally, India's real estate sector's contribution to GDP has consistently increased, rising from under 5% in the early 2000s to between 6-8% today, with expectations to reach 14-20%, making it a potential $10 trillion growth engine by 2047.

Shekhar Patel, President of CREDAI, remarked, “By 2047, Indian real estate will be defined not only by square footage or asset values but by the quality of life we create for millions. The sector is uniquely positioned to redefine India’s urban future: designing climate-resilient cities, developing affordable yet aspirational homes, and nurturing ecosystems that promote innovation and inclusivity.”