India's Overall Office Stock Projected To Exceed 2 Billion Sq Ft By 2047: Report

(MENAFN- IANS) New Delhi, Sep 11 (IANS) Driven by increasing institutionalisation, demand scale-up and strong economic growth prospects, India's overall office stock is likely to exceed 2 billion square feet by 2047, a report said on Thursday.

'Grade A' office stock in India has surged over 3 times since 2010 to more than 800 million sq ft currently, driven by accelerated demand from both Global Capability Centres (GCCs) and domestic players across segments such as technology, BFSI, engineering and manufacturing etc, Colliers said in a report in collaboration with Confederation of Real Estate Developers' Association of India (CREDAI).

On the industrial and warehousing front, Grade A stock levels surpassed the 250 million sq ft mark in 2025, growing multifold compared to 2010 levels, amid robust infrastructure development, private sector participation and evolving consumer demand as well as warehousing requirements.

According to the report, demographic shifts, rising income levels and improved affordability and housing sales.

In the 2010s, urban migration driven by IT led to a surge in demand for housing across tier I cities of the country. Furthermore, the Real Estate (Regulation and Development) Act (RERA) brought in the much-needed transparency and accountability.

Although housing sales took a hit in the immediate aftermath of the COVID-19 pandemic, the segment bounced back subsequently on a stronger footing -- evident by record-breaking sale volumes in recent years.

Over the next few decades, India's median age is expected to rise further to 30-40 years, a range that aligns with peak income and consumption levels.

This transition represents a sweet spot for the economy, as a significant proportion of the workforce enters their prime earning years.

Coupled with an anticipated rise in income levels and supported by progressive housing policies, annual housing sales could potentially double to 1 million units by 2047, the report stated.

Indian cities are urbanising rapidly, with nearly 900 million people -- 53 per cent of the population projected to live in urban areas by 2050, up from the current levels of 37 per cent.

To accommodate this growth, urban development needs to expand beyond the established tier I cities into smaller tier II and III cities and emerging growth corridors as well.

“India is not just expanding its infrastructure; it is reimagining the future of urban living. In the last 25 years, even though budgetary infrastructure allocations increased at a CAGR of 13-14 per cent, a lot more needs to be done, especially in the wake of rapid urbanisation,” said Vimal Nadar, National Director and Head of Research, Colliers India.

India's real estate sector is set for a high-paced, multi-faceted growth across asset classes.

Continued government impetus, along with alignment of multiple private and public stakeholders, should help India become the third-largest economy by 2030. Further, the Indian economy can potentially reach $35-40 trillion by 2047.

At the core of this economic transformation is India's real estate sector's contribution to the GDP has grown steadily-from under 5 per cent in the early 2000s to 6-8 per cent today and is projected to reach 14–20 per cent, positioning it as a potential $10 trillion growth catalyst by 2047, the report stated.

Shekhar Patel, President, CREDAI, said,“By 2047, Indian real estate will not just be measured in square feet or asset values -- it will be defined by the quality of life we create for millions of citizens. The sector is uniquely positioned to reimagine India's urban future: designing climate-resilient cities, building affordable yet aspirational homes, and nurturing ecosystems that foster innovation and inclusivity."

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