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Will India’s Luxury Residential Market Boom in 2026?

Will-Indias-Luxury-Residential-Market-Boom-in-2026

India’s luxury residential market is no longer a niche driven by a handful of marquee developments. It has evolved into a multi-city, demand-backed segment, supported by wealth creation, capital market liquidity, and changing buyer expectations.

The question is no longer whether luxury housing has demand but whether this momentum is cyclical or structural as the market approaches 2026.

The transaction data suggests the latter.

Luxury Sales: Scale and Depth Across Cities

Recent transaction activity indicates that luxury housing has achieved both scale and geographic diversification.

Gurugram: India’s Largest Luxury Market

  • 4,659 luxury units sold
  • Transaction value: ₹36,669 crore

Gurugram leads the country due to:

  • Concentration of HNIs and CXOs
  • Strong global corporate presence
  • Large-format luxury developments with gated ecosystems

The market benefits from both end-user demand and long-term investor confidence.

Mumbai: Capital Value Leadership

  • 2,059 luxury units sold
  • Transaction value: ₹22,257 crore

Mumbai’s luxury segment remains defined by:

  • Scarcity of land
  • Strong redevelopment pipeline
  • Ultra-high ticket sizes driven by location and exclusivity

Despite lower unit volumes compared to NCR, Mumbai commands unmatched capital depth.

Hyderabad: Rapid Luxury Market Maturity

  • 1,158 units sold
  • Transaction value: ₹10,398 crore

Hyderabad’s emergence reflects:

  • Technology-led wealth creation
  • Influx of senior management and entrepreneurs
  • Preference for larger homes and gated communities

Luxury here is driven by lifestyle consumption rather than legacy wealth alone.

Broadening of India’s Luxury Map

The luxury narrative is now clearly expanding beyond traditional strongholds.

  • Noida: 770 units | ₹6,840 crore
  • Bengaluru: 633 units | ₹4,508 crore
  • Ahmedabad: 206 units | ₹1,605 crore

These figures indicate that high-value housing demand is becoming multi-nodal, supported by regional wealth creation and improving urban infrastructure.

What Is Driving Luxury Housing Demand?

1. Wealth Creation and Capital Allocation

Equity markets, entrepreneurship, and GCC-led income growth have expanded the luxury buyer base.

2. Shift in Buyer Preferences

Buyers are prioritising:

  • Larger homes
  • Low-density living
  • Premium amenities and privacy

Luxury is increasingly being viewed as a primary residence, not just an investment.

3. Strong End-User Participation

Unlike past cycles, current luxury absorption is largely end-user driven, reducing speculative risk.

Supply Discipline: A Key Difference This Cycle

Developers are showing greater restraint:

  • Phased launches
  • Clear differentiation between premium and luxury
  • Focus on branded, high-quality developments

This discipline has helped avoid inventory overhangs that plagued earlier luxury cycles.

Will the Luxury Market Boom in 2026?

The data points to sustained growth rather than a speculative boom.

Key indicators supporting this view:

  • Strong absorption across multiple cities
  • High-value transactions backed by income and wealth creation
  • Limited supply of true luxury assets
  • Increasing preference for lifestyle-led housing

Luxury housing in India is transitioning from an aspirational segment to a structural asset class.

Risks to Monitor

  • Price overshooting in select micro-markets
  • Over-extension of ultra-luxury supply
  • Sensitivity to global economic volatility

However, these risks remain localized rather than systemic.

Outlook: A Mature Luxury Cycle Ahead

As India approaches 2026, the luxury residential market is likely to see:

  • Continued absorption in NCR and MMR
  • Faster maturation of luxury segments in cities like Hyderabad, Bengaluru, and Noida
  • Greater institutional interest and branded development

The luxury story is no longer confined to a few pin codes. It is becoming a national real estate theme, anchored in economic reality rather than speculation.

1. Is India’s luxury residential market growing or slowing down?
India’s luxury residential market is growing and showing signs of structural strength. Transaction data across multiple cities indicates sustained end-user demand rather than speculative activity.

2. Which cities are leading India’s luxury housing market?
Gurugram and Mumbai lead India’s luxury housing market in terms of transaction value and depth, followed by emerging luxury hubs such as Hyderabad, Noida, Bengaluru, and Ahmedabad.

3. What is driving demand for luxury homes in India?
Demand is driven by wealth creation, capital market liquidity, senior executive and entrepreneurial income growth, and a shift in buyer preference toward larger, low-density, lifestyle-oriented homes.

4. Is luxury housing demand end-user driven or investor driven?
Unlike previous cycles, current luxury housing demand is largely end-user driven. Buyers are increasingly purchasing luxury homes as primary residences rather than purely investment assets.

5. Will India’s luxury residential market boom in 2026?
The market is more likely to see sustained, demand-backed growth rather than a speculative boom. Limited supply of true luxury assets and strong absorption support long-term stability.

6. What risks should investors and developers watch in the luxury housing segment?
Key risks include price overshooting in select micro-markets, over-extension of ultra-luxury supply, and sensitivity to global economic conditions. These risks remain localized rather than systemic.

7. How is India’s luxury housing market evolving across cities?
Luxury housing is becoming multi-nodal, expanding beyond traditional strongholds into cities like Hyderabad, Bengaluru, Noida, and Ahmedabad, supported by regional wealth creation and improving infrastructure.

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Arjun Sharma of Select City Walk Acquires South Delhi Property for Rs 125 Crore

Arjun Sharma of Select City Walk Acquires South Delhi Property for Rs 125 Crore

Arjun Sharma, one of the founders of Delhi’s Select City Walk mall, has recently purchased a sprawling bungalow in South Delhi’s West End. The deal, valued at Rs 125 crore, was conducted through his firm, Select World Tours, where Sharma serves as director. According to documents accessed by CRE Matrix, he also paid Rs 8.75 crore in stamp duty for the transaction.

Moreover, Sharma currently serves as an Independent Director at Sandhar Technologies Limited. Over the years, his business experience has spanned tourism and hospitality, including leading Heritage Village Resort & Spa in Gurgaon and Goa, Sita Travels (now owned by Thomas Cook), and Le Passage to India (now owned by TUI). Importantly, Select City Walk is now part of India’s first retail REIT, backed by the Blackstone Group.

Surge in Luxury Real Estate Interest

A recent survey by India Sotheby’s International Realty (ISIR) indicates that nearly half of respondents expect 12%-18% returns from real estate investments. However, optimism has slightly declined, with only 71% of HNIs and UHNIs projecting strong returns, down from 79% in 2024. Despite this, most believe that India will remain the fastest-growing major economy, with GDP growth of 6%-6.5%.

South Delhi Property Prices on the Rise

Meanwhile, renewed buyer confidence has boosted demand for independent floors in South Delhi. Also, a surge in redevelopment activity has further pushed up their average prices. Specifically, Category A and B colonies saw price jumps of 12%-17% in Q3 2025. Analysts attribute this increase primarily to the growing preference for luxury housing among high-net-worth individuals.

For investors like Sharma, timing and location matter. West End, South Delhi, is a prime luxury zone. Therefore, with strong demand for high-end residential properties, strategic acquisitions offer both prestige and potential returns.

Recent Transactions

South Delhi continues to attract high-net-worth buyers, with luxury property transactions on the rise. These high-profile deals highlight strong demand for prime locations, driven by redevelopment activity, renewed buyer confidence, and a growing preference for upscale independent floors.

In a recent transaction, South Delhi resident Ashok Mittal has acquired a premium bungalow in Delhi’s upscale Sunder Nagar locality for ₹65 crore. In another transaction earlier this year, Yashwant Singh, a member of a Rajasthan royal family, purchased a bungalow in Delhi’s upscale Golf Links area for a staggering ₹100 crore.

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Cognizant Renews 92,000+ Sq Ft Office Lease in Navi Mumbai in ₹40 Cr Deal

Cognizant office lease renewal in Navi Mumbai

Cognizant Technology Solutions India Pvt. Ltd. has renewed a large office lease in Navi Mumbai, reaffirming its long-term presence in one of Mumbai’s key IT hubs. According to property registration documents accessed by CRE Matrix, the IT services major has secured over 92,000 sq ft of commercial office space at Mindspace Business Park in Airoli for a total lease value of nearly ₹40 crore. The transaction highlights continued demand for Grade A office spaces in established technology parks.

Details of the Lease Renewal

Cognizant occupies the renewed office space across the second and sixth floors of Mindspace Business Park. The second floor measures around 45,000 sq ft, while the sixth floor exceeds 46,000 sq ft. Notably, the lease term is five years, with a lock-in period of three years.

Cognizant will start with a monthly rent of ₹62.70 lakh. The rent will escalate annually by 4.5%. The agreement also includes a two-month rent-free period from May 5, 2030, to July 4, 2030. In addition, the company will pay common area maintenance charges of ₹11 per sq ft per month.

Registration and Location Significance

The transaction was registered on December 12, 2025. Cognizant paid stamp duty of over ₹42 lakh and registration fees of ₹30,000 for the deal.

Meanwhile, Mindspace Business Park in Airoli continues to attract leading IT and technology firms. Owing to its strong infrastructure, reliable connectivity, and campus-style development, the location remains a preferred office destination. As a result, such large-scale renewals further strengthen Navi Mumbai’s position as a stable and mature commercial office market.

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IBM Leases 1.62 Lakh Sq Ft at Embassy Golflinks, Bengaluru for ₹2.4 Cr Monthly Rent

IBM Embassy Golflinks Bengaluru lease

In one of the largest commercial leasing transactions of 2025, IBM India Pvt. Ltd. has leased 161,884 sq ft of Grade-A office space at Embassy Golflinks Business Park (EGL), Bengaluru. According to documents accessed by CRE Matrix, the transaction was registered on 23 September 2025.

Transaction Structure and Financial Terms

IBM India Pvt. Ltd., the licensee in the transaction, has leased a total built-up area of 161,884 sq ft. The starting monthly rent is ₹2,42,82,600, translating to ₹150 per sq ft. The company has paid a security deposit of ₹14,56,95,600 for the lease. This runs for a total tenure of 60 months with a lock-in period of 36 months. The agreement also provides IBM with 216 car parking slots at a charge of ₹4,526.70 per slot. IBM was scheduled to take possession on 17 April 2025, followed by a 45-day rent-free fit-out period before full rent commences.

Fit-Out Terms Highlight Long-Term Occupation Strategy

The lease includes a detailed fit-out arrangement that reflects a large-scale and long-term workspace buildout. During the fit-out phase, IBM will pay a fit-out rent of ₹63.09 per sq ft and has furnished a fit-out security deposit of ₹6,12,79,569. This is equivalent to six months of fit-out charges. Major technology and consulting firms typically use such commercial terms when they make substantial investments in customized office infrastructure. They do this to support delivery, engineering, and innovation-led teams.

Prime Campus Location Strengthens EGL’s Market Position

IBM has leased space across Unit 3 and Unit 4 on the third floor and Unit 1 and Unit 2 on the fourth floor of the Pine Valley block at Embassy Golflinks, Challaghatta. Positioned between Koramangala and Old Airport Road, Embassy Golflinks Business Park remains one of India’s most sought-after integrated technology campuses.

The park continues to attract Fortune 500 occupiers across IT services, BFSI, cybersecurity, research and development, and consulting sectors. IBM’s high-value lease further reinforces the sustained demand for Grade-A office spaces in Bengaluru. Furthermore, it highlights the city’s continued importance as a global technology and business hub.

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Madhuri Dixit and Dr. Shriram Nene Sell Juhu Apartment for ₹3.9 Crore

Madhuri Dixit Sells Juhu Apartment

Bollywood actress Madhuri Dixit Nene and her husband, Dr. Shriram Madhav Nene, have sold their luxury apartment in Mumbai’s premium Juhu locality for ₹3.9 crore, according to property registration documents accessed by CRE Matrix. The transaction was registered on December 15, 2025, marking another high-profile residential deal in Mumbai’s western suburbs.

The apartment is located at Flat No. 41 on the fourth floor of Iris Park, Deep Varsha Co-operative Housing Society, situated on Military Road in Juhu (400049). Notably, the property has a carpet area of 780.13 sq ft. It is located within one of Mumbai’s most sought-after residential micro-markets, known for its celebrity ownership.

Transaction Details

The total consideration recorded in the sale deed stands at ₹3.90 crore. In addition to the sale value, a security deposit of ₹19.5 lakh formed part of the transaction. The buyer of the apartment is Mrs Darshana Ghatlia. As reflected in the stamp duty calculation sheet within the registered documents, the buyer also availed a 1% stamp duty concession under the Maharashtra government’s women homebuyer benefit scheme.

Nearly 100% Appreciation Since 2012

Madhuri Dixit and Dr. Nene had originally purchased the Juhu apartment in June 2012 for ₹1.96 crore. The latest transaction reflects a capital appreciation of nearly 100% over a period of 13 years. The strong price growth indicates Juhu’s enduring appeal as a premium residential destination, where demand remains resilient despite market cycles.

Juhu continues to command consistent buyer interest due to its strategic location, proximity to the coastline, established social infrastructure, and concentration of celebrity residences. Limited availability of premium homes in the area has supported steady capital appreciation, with celebrity-owned properties often attracting additional valuation premiums.

Recent Transactions

Celebrity real estate transactions in Mumbai remain closely tracked indicators of market strength. As a result, recent high-value deals in established western suburbs stand out. Moreover, they highlight resilient demand. At the same time, limited supply continues to support steady capital appreciation in prime residential pockets.

In a recent transaction, popular comedian Bharti Singh sold her apartment in Mumbai’s Goregaon West for ₹3.75 crore. In another transaction, Preity Zinta sold her premium apartment in Mumbai’s upscale Bandra locality for ₹14.08 crore. 

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New Century Sofa India Secures Large Industrial Lease in Tamil Nadu

New Century Sofa India Secures Industrial Lease

IndoSpace, a leading investor, developer, and operator of Grade-A industrial and logistics real estate in India, has signed a major lease with New Century Sofa India. The deal covers 2.72 lakh sq ft at IndoSpace Industrial Park, Oragadam II. The facility is located in Block B, Venbakkam, along the Oragadam–Walajabad Road in Sriperumbudur Taluk, Kancheepuram District.

According to lease documents shared by CRE Matrix, the agreement has a 36-month tenure with a full 36-month lock-in. This structure ensures long-term stability for both parties. The lease also includes a 5% annual rent escalation, offering predictable annuity income for IndoSpace and operational certainty for the tenant.

Phased Possession For Faster Operational Readiness

Notably, the lease covers three buildings within the industrial park. This structure allows New Century Sofa India to plan its operations efficiently. IndoSpace handed over possession on 1 April 2025, enabling early operational preparation. Buildings 1 and 3 had no fit-out period. As a result, the tenant could install machinery and begin operations immediately after handover.

Meanwhile, Building 2 follows a staggered timeline. The lease commencement date was 16 May 2025. The rent commencement date began on 1 October 2025. Consequently, this phased approach offers flexibility. It also aligns rental obligations with operational readiness.

Part of IndoSpace’s Larger Industrial Expansion Strategy

Importantly, this transaction aligns with IndoSpace’s aggressive expansion in Tamil Nadu. The developer has increased its planned capital deployment to ₹4,500 crore for new logistics and warehouse developments. This surge reflects the state’s rapid emergence as a preferred destination for large-scale manufacturing. Strong infrastructure and supportive policies continue to drive this growth.

Global and domestic OEMs such as Hyundai, Nissan, Foxconn, and Pegatron have already announced major expansions in the region. Meanwhile, IndoSpace plays a critical role in supporting these supply chains. It does so by delivering scalable, Grade-A industrial facilities.

Furthermore, the Oragadam deal adds to IndoSpace’s recent leasing momentum. In recent quarters, the company signed large occupiers across multiple locations. These include Relaxo Footwears at Bhaproda (243,549 sq ft), Puma at Luhari IV (around 279,000 sq ft), Inox Solar at Bavla (284,180 sq ft), and a nearly 700,000 sq ft expansion by RenewSys at Khopoli II.

Consequently, industry experts see this sustained leasing activity as a sign of strong demand. Key sectors include consumer goods, retail, electronics, and renewable energy. This demand is driven by India’s expanding consumption base and continued supply chain diversification.

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Hrithik Roshan’s Parents Lease Commercial Space in Andheri West for ₹14.5 Lakh a Month

Rakesh Roshan and Wife leases to Fabindia

Hrithik Roshan’s parents, filmmaker Rakesh Roshan and Pramila Rakesh Roshan, have leased a commercial property in Mumbai to Fabindia Limited for a monthly rent of ₹14.5 lakh, according to documents accessed by CRE Matrix. The deal reflects steady demand for premium retail spaces in established commercial locations across the city.

The property is located at De Mall on Veera Desai Road in Andheri West, a well-known retail and commercial corridor. It offers a carpet area of 6,389.47 sq ft, with the rent working out to around ₹227 per sq ft. This rate aligns with current market levels for quality retail assets in the area.

Key Lease Terms and Timeline

The lease agreement was registered on December 9, 2025, and includes a security deposit of ₹87 lakh. Fabindia Limited also received access to five car parking slots as part of the deal. The landlord handed over the premises on September 1, 2025.

The lease runs for a period of five years. Fabindia has a lock-in period of 15 months, while Rakesh Roshan and Pramila Rakesh Roshan are committed to a full five-year lock-in. As a result, the structure offers flexibility to the tenant and long-term income visibility to the owners.

Structured Rental Escalation

The agreement clearly outlines rental escalation across the lease term. The monthly rent stands at ₹14.5 lakh in the first year. It rises to ₹15 lakh in the second year and ₹16 lakh in the third year. In the fourth and fifth years, the rent increases further to ₹18.4 lakh per month, reflecting confidence in the long-term potential of Andheri West as a retail destination.

Celebrity Interest in Commercial Real Estate

Commenting on the transaction, Abhishek Kiran Gupta, CEO, CRE Matrix, said the deal highlights the growing interest among celebrities in commercial real estate. He noted that prime retail assets offer stable cash flows, predictable returns, and long-term value appreciation, making them an attractive wealth-building option for high-net-worth individuals.

Recent Transactions

Recent office and commercial space deals involving celebrities show a clear shift towards income-generating real estate assets. Increasingly, high-profile investors are choosing premium retail spaces and Grade A offices to secure steady rental income and long-term capital appreciation.

Earlier this year, Bollywood actor Manoj Bajpayee and his wife, Shabana Bajpayee, leased two commercial properties in Andheri West for a monthly rent of ₹10.9 lakh for a five-year term, highlighting the continued appeal of Mumbai’s western suburbs for commercial investments.

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Apple Opens First Store in Noida at DLF Mall of India, Signs ₹65 Crore Lease for 11 Years

Apple is set to open its first retail store in Noida on December 11, marking the company’s fifth official Apple Store in India and its second in the Delhi NCR region after Saket. The new outlet is located at DLF Mall of India, one of the country’s largest and most prominent shopping destinations.

According to sublease documents accessed by CRE Matrix, Apple India Private Ltd has leased 8,240.78 sq ft of retail space at the mall for 11 years. The total rental outgo over the full tenure stands at approximately ₹65 crore, reflecting a long-term commitment to the market.

Lease Details

The documents show that Apple has leased six ground-floor retail units at DLF Mall of India, together comprising 8,240.78 sq ft of carpet area. The agreed rental stands at ₹263.15 per sq ft per month. This translates to a monthly rent of around ₹45.3 lakh and an annual rent of about ₹5.4 crore.

Additionally, the lease includes a one-year rent-free period. It also features a 15% rent escalation every three years. Over the full 11-year tenure, the total rent aggregates to ₹64.9 crore. Apple India Private Ltd and Paliwal Real Estate Limited signed the sublease deed on February 25, 2025.

Meanwhile, queries have been sent to Apple India, DLF, and Paliwal Real Estate Limited. The story will be updated if responses are received.

Strengthening Apple’s NCR Presence

With this launch, Apple strengthens its footprint in the Delhi NCR region. The Noida outlet follows the Saket store that opened in 2023. Retail experts say the move signals Apple’s growing confidence in Noida as a high-consumption and high-growth market.

Although rents for smaller stores at DLF Mall of India typically range between ₹500 and ₹700 per sq ft, larger-format stores enjoy pricing advantages. Due to scale and negotiation leverage, brands like Apple secure lower effective rentals. Experts also note that Apple’s Noida rent aligns closely with its Saket store, reinforcing consistency in its leasing approach.

Location Advantage and Catchment

DLF Mall of India spans nearly one million sq ft, making it Noida’s largest mall. It is also more than twice the size of Select Citywalk, Saket. Importantly, it remains the only retail centre of this scale and category in the region.

As a result, the Noida store benefits from a wide regional catchment. This includes Ghaziabad, Greater Noida, South Delhi, Agra, Mathura, and several emerging demand hubs.

Brand Pull Reflected in Leasing Strategy

According to industry observers, Apple’s rental levels reflect more than just location quality. They also highlight the strong footfalls and brand value that Apple brings to large-format malls. In turn, the Noida lease enhances DLF Mall of India’s position as a marquee retail destination in North India.

Overall, with the Noida opening, Apple continues its measured and data-driven retail expansion in India. The strategy balances prime locations, uniform store formats, and long-term lease commitments across key urban markets.

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Current Trends in Commercial Real Estate (CRE) in India

Current Trends in Commercial Real Estate (CRE) in India

India’s Commercial Real Estate (CRE) sector is undergoing a strong growth phase, driven by rising office demand, expanding infrastructure, and stable economic fundamentals. For investors, developers, and occupiers, CRE is becoming one of the most attractive asset classes due to its high yield potential, low volatility, and increasing institutional participation.

This blog covers:

Key drivers fueling India’s CRE boom
Emerging trends across office, retail, warehousing, and mixed-use segments
City-wise performance and hotspots
Risks affecting the sector
The 3–5-year outlook for CRE investors

What’s Driving the CRE Boom in India

Economic Growth & Urbanization

Growth in Urban Population & Tier-2/3 Cities

India’s rapid urbanization is shifting demand toward business districts, IT parks, and commercial hubs. With Tier-2 and Tier-3 cities improving their infrastructure and talent base, they are emerging as the next hotspots for office development and flexible workspaces.

Expansion of Industries and Outsourcing Sectors (IT/ITeS, Retail, Logistics)

Sectors like IT/ITeS, BFSI, GCCs, retail, and e-commerce continue to be the backbone of office demand. Global Capability Centers (GCCs) are expanding, particularly in Bengaluru, Hyderabad, Chennai, Pune, and NCR.

Demand for Flexible Workspaces & Co-Working

Rise of Startups and SMEs — Shift from Traditional Offices

With cost optimization becoming a priority, companies are preferring plug-and-play coworking and managed office spaces. Startups and SMEs are driving this flexible ecosystem.

Influence of the Hybrid Working Model Post-Pandemic

Hybrid models have reshaped office leasing patterns. Demand is now spread across both central business districts (CBDs) and peripheral micro-markets, as seen in Whitefield (Bengaluru) and North Chennai — both witnessing strong quarterly rental growth.

Infrastructure Development & Connectivity

Government Initiatives: Metro, Smart Cities, Road/Rail Connectivity

Large-scale metro expansions, smart city missions, and new expressways (like Dwarka Expressway, Mumbai Coastal Road) are directly enhancing commercial property demand.

Impact on Commercial Property Valuations

Areas with improving connectivity—like NCR’s NH-48 Prime—have seen office rents rise over 16% YoY and a 3-year CAGR of 10.1%, demonstrating strong value creation where infra growth is taking place.

Key Emerging Trends in CRE (2024–2026)

Rise of Logistics & Warehousing Real Estate

E-Commerce Boom & Demand for Storage + Last-Mile Delivery Hubs

Online retail and 3PL logistics companies are aggressively expanding warehousing spaces across Mumbai, NCR, Pune, and Hyderabad.

Incentives for Industrial Parks & SEZs

Government support for logistics parks, free trade zones (FTZs), and industrial corridors is accelerating investor interest.

Shift Towards Grade-A Office Spaces with ESG/Green Certifications

Growing Preference for Energy-Efficient, Sustainable Buildings

Corporates now prefer Grade-A, IGBC/LEED-certified office buildings due to energy efficiency, compliance requirements, and employee well-being.

Demand from Multinational & Large Indian Firms

Fortune 500 companies and GCCs are driving bulk leasing in Grade-A corridors in Bengaluru, Mumbai, NCR, and Hyderabad.

Diversification: Retail, Mixed-Use & Co-Living Developments

Mixed-Use Developments Combining Offices, Retail, F&B, Recreation

Integrated townships and mixed-use business parks are becoming the norm, offering office spaces along with malls, food courts, entertainment, and residential blocks.

Co-Living / Serviced-Apartment Growth in Metros

Cities with strong migrant populations—Bengaluru, Mumbai, Pune, NCR—are seeing rapid expansion in co-living and serviced apartments.

Regional Hotspots & Emerging Cities

Metro Cities vs Tier-2 / Tier-3 Cities

Overview of Metros (Mumbai, Bengaluru, NCR, Pune)

Delhi NCR: Led the country with a 16.4% YoY surge in office rentals between April–June.
Mumbai: Recorded the highest quarterly rental growth of 3.6%, reaffirming its position as India’s most resilient office market.
Bengaluru: Whitefield shows strong momentum as companies shift outside CBDs.
Chennai: Northern suburbs are witnessing increased leasing activity.

Emerging Strength in Cities Like Hyderabad, Ahmedabad, Jaipur, Coimbatore

Improving infrastructure, growing IT presence, and business-friendly policies are boosting these cities’ CRE prospects.

What Makes a City Attractive for CRE Investors

Connectivity, Talent Pool, Business Environment, Policy Incentives

A combination of strong transport networks, skilled workforce, government incentives, and presence of top corporates makes a market favorable for CRE investment.

Challenges & Risks Affecting CRE in India

Regulatory & Compliance Issues

Real Estate Regulations, Approvals, RERA Impact

While RERA has brought transparency, regulatory approval cycles remain slow in several states.

Heterogeneous Tax & Compliance Environment Across States

Tax incentives, stamp duties, and policy rules differ widely across regions.

Economic Cycles & Global Uncertainty

Impact of Global Recession Risks, Interest Rate Fluctuations

Economic uncertainties can delay leasing decisions and slow down new construction.

Vacancy Rates, Rental Yield Pressures

Certain micro-markets continue to face oversupply challenges.

Sustainability & Environmental Considerations

Need for Green Certification, Energy Efficiency, Waste Management

Corporate occupiers increasingly demand buildings that meet sustainability metrics.

Balancing Profitability vs ESG Compliance

Developers often weigh upfront costs vs long-term operational efficiencies.

Outlook: What to Expect in the Next 3–5 Years

Continued Growth in Logistics & Warehousing

Driven by e-commerce and supply chain modernization.

Greater Demand for Hybrid & Flexible Office Spaces

Coworking and managed offices will continue strong leasing momentum.

Rise of Mixed-Use and Integrated Developments

More developers will adopt the work + live + shop format.

Increased Focus on ESG, Tech-Enabled Facilities, and Investor Interest

Smart buildings, automation, energy-efficient designs, and REIT participation will rise.

FAQs About CRE in India

Is investing in CRE a good idea right now in India?

Yes, CRE remains attractive due to stable rentals, strong demand in Grade-A markets, and growth in logistics/warehousing. However, investors should evaluate market risks and the supply-demand balance.

Which cities offer the best returns for CRE investors?

Mumbai, Bengaluru, NCR, Hyderabad, and Pune are top choices. Emerging cities like Ahmedabad, Jaipur, and Coimbatore are gaining traction due to rising infrastructure and business activity.

How does sustainability (green buildings) affect CRE investment value? Green-certified buildings often command higher rentals, lower vacancy, and increased investor preference due to ESG compliance requirements.

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JLL Leases 1.2 Lakh Sq Ft at Prestige Skytech, Hyderabad for ₹64 Lakh a Month

JLL leases office space in Hyderabad

Global real estate consultancy Jones Lang LaSalle Property Consultants India (JLL) has leased 1.21 lakh sq ft of office space at Prestige Skytech – Sky One in Poppalguda, Gandipet mandal, Hyderabad. The deal highlights growing confidence in the city’s western office corridor.

According to property registration data accessed from CRE Matrix, JLL leased the space from Mrs. Prahathi Madhu at a starting monthly rent of ₹64.13 lakh. The agreement was registered on November 28, 2025, with a security deposit of ₹3.85 crore.

Transaction Details

The lease covers 1,20,993 sq ft at a starting rent of ₹53 per sq ft per month. This translates to a monthly outgo of ₹64.13 lakh. The agreement runs for 60 months and includes a 36-month lock-in period. The deal also provides 134 car parking spaces. In addition, JLL will pay CAM charges of ₹13 per sq ft per month.

The property was scheduled for handover on September 15, 2025. However, the rent will start from April 15, 2026, giving JLL a seven-month fit-out or rent-free period. The lease includes a 15% rental escalation after three years from the rent start date.

Western Corridor Continues to Attract Grade A Demand

The transaction highlights steady demand for Grade A office space in Hyderabad. Emerging micro-markets such as Poppalguda and Gandipet continue to gain traction. Improved infrastructure and close access to the Financial District support this shift.

Large office leases by global real estate firms show that corporate occupiers still prefer long-term, high-quality assets. This trend continues despite the rise of hybrid work models. Hyderabad’s western corridor is now strengthening its position as a key hub for large office mandates and institutional-grade developments.

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