The Grade A office market in India is expected to reach 1.2 billion square feet by 2030

In India, the office sector has been one of the most resilient to the pandemic's effect. The recovery has been so strong that India's Grade A office market across the top seven cities is on track to exceed 1 billion square feet by 2026, according to a JLL paper titled 'Reimagining, Reinventing, and Redefining Real Estate 2030' that was recently released at the National Real Estate Development Council's (Naredco) The Real Estate Forum 2022, which JLL is a Knowledge Partner for.

Flex space is predicted to rise in popularity and become a mainstream occupier sector in the post-Covid age, as operator-landlord collaborations create better office assets. As a consequence of the shift toward a more dispersed work model, occupiers will consider measures that will enable them to not only increase the agility of their portfolios, but also tap into the talent pool in rising metropolitan centres.

Given the shifting dynamics of portfolio optimization and employee demands, the flexible space sector will be critical in assisting occupiers' development objectives. 

As a result, the flex market is predicted to quadruple its footprint in the top seven cities to 75 million square feet by 2025 and surpass 100 million square feet by 2030.

"Given the growth characteristics, India's Grade A office market across the top seven cities is set to surpass 1 billion square feet by 2026 and reach 1.2 billion square feet by 2030,"

India will maintain its leadership position in technology outsourcing and will improve on its position as the largest R&D and Global Capability Centre centre in financial services, software development, new technology, artificial intelligence, and machine learning. Additionally, with the country's increased emphasis on becoming a manufacturing hub, engineering and manufacturing corporations will establish significant research and development facilities here, transforming the country's office market into the most vibrant in the area. 

It has already established itself as a worldwide vaccination centre, establishing itself as a leader in healthcare and life sciences research and development. India may be responsible for more than two-thirds of all occupier activity in the Asia-Pacific region."

In India, both the office and residential sectors have had a very strong and consistent rebound during the last several quarters. 

With investor confidence restored, as seen by the increase in overall institutional investment in the Indian real estate sector, we are well positioned to expand rapidly over the next several years. 

What is most encouraging to see is the occupiers' commitment to sustainability and green solutions that aid in carbon reduction.

Sandeep Runwal, president of Naredco Maharashtra and managing director of Runwal Developers, stated, "One of the highlights of the post-covid world has been the recovery of the office segment, which is expected to reach over 1 billion square feet in size by 2026 across seven cities, including Delhi, Mumbai, Pune, Chennai, Kolkata, Bangalore, and Hyderabad." 

It's an intriguing trend and, in our opinion, an appropriate theme for the Naredco Maharashtra flagship event, The Real Estate Forum 2022."

India's commercial Grade A office stock has a 42 percent green-certification penetration across the top seven cities. Over the next decade, the global penetration of green-certified buildings is anticipated to exceed 50%. Indeed, new supply is expected to be green-rated to the tune of 70% to 75%, even while existing plants seek to update and minimise their carbon impact. 

With occupiers driving the green agenda and prepared to pay a premium for green buildings, active action by occupiers on net zero carbon commitments will drive the commercial office market toward ambitious sustainability and net-zero carbon ambitions.

The market capitalization of listed REITs, which presently stands at USD 8 billion, is likely to expand significantly over the next several years as the specialised REITs market develops. Additionally, this will result in greater retail involvement. 

Consolidation of segment-specific rent-generating assets Institutional investment in rent-earning properties across segments will expand, resulting in increased asset consolidation. Portfolio transactions will gain prominence.

The emergence of e-commerce and the need for 'within-15-minute delivery' has been a significant driver of the urban logistics and in-city logistics stories. Multi-story warehouses would also be the next stage in logistics, allowing for more efficient site usage at last-mile delivery points and peripheral logistics. 

On-demand warehousing enables direct-to-consumer retailers to access order fulfilment and warehouse services on-demand. Customers want new options with an omnichannel emphasis, such as purchasing online and picking up in-store or shipping from the shop.