Mumbai, Dec 16 (NationPress) Gross office absorption in India is projected to exceed 80 million square feet by 2025, solidifying the nation's status as a global hub for talent and enterprise, according to a report released on Tuesday. The expansion of global capability centres (GCC) has been identified as a significant driver, strengthening India’s position within the global value chain.

As we approach 2025, a pivotal transition from recovery to structural transformation is anticipated. The real estate sector is showcasing robust fundamentals across various segments including residential, commercial, retail, logistics, warehousing, and data centres, all propelled by policy stability, consumer demand, and the continuous momentum of India’s economy.

“The advancements achieved by 2025 reinforce our confidence in the inherent strength of India’s real estate sector. As the country strides towards becoming a $1 trillion real estate economy by the decade's end, the forthcoming opportunities are both exhilarating and transformative,” stated Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

In the residential market, there is a sustained upward trend, with premium and luxury housing emerging as the leading demand segment.

Properties priced over Rs 1 crore represented over half of all transactions in major cities, highlighting a shift in affordability, aspirations, and buyer demographics. Cities like Bengaluru, Hyderabad, Chennai, and Delhi NCR experienced double-digit price growth, reflecting both a scarcity of quality supply and strong buyer confidence.

Developers have increasingly concentrated on premium offerings that emphasize brand assurance, sustainability, privacy, and advanced digital features.

Conversely, the affordable housing segment faces challenges due to rising input costs and limited financing options, indicating a need for targeted policy measures to restore equilibrium across income levels.

Growth in Tier 2 and 3 cities is notable, supported by infrastructure improvements, increasing household incomes, and proactive state-level reforms. This shift represents one of the most significant structural changes of the decade, according to the report.

Retail real estate is witnessing a resurgence in 2025, with high streets and malls adapting to experiential formats that boost foot traffic and conversion rates.

In 2026, the commercial office sector is projected to sustain its growth, with GCCs, tech firms, and global businesses reinforcing India’s reputation as a strategic operations hub.

“Flexible workspaces will continue to evolve into more specialized and sector-driven formats. The role of Tier 2 and Tier 3 markets will expand in both residential and commercial sectors, aided by infrastructure development and economic decentralization,” the report concluded.