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India’s commercial real estate market is at a pivotal point in 2025. With the Reserve Bank signalling rate stability, strong infrastructure spending, and consistent GDP growth, the fundamentals have aligned for both institutional and retail investors.
Grade-A office absorption is up, warehouse demand is surging with e-commerce, and data centres are drawing global capital.
Unlike residential, commercial real estate (CRE) delivers predictable, contract-backed income with professional tenants and long-term appreciation potential.
Commercial properties typically yield between 8% and 12% annually, compared to 2% to 4% for residential properties. Corporate tenants often sign leases of 5-10 years, providing investors with stability and continuous cash flow.
Unlike residential tenants, corporates ensure on-time payments, maintenance accountability, and lower turnover rates. This reduces vacancy risk significantly.
While residential investments often carry emotional bias, commercial property is driven by metrics, rental yield, tenant profile, and location economics.
Bengaluru leads because tech, R&D, GCCs, and AI-first companies scale faster here than anywhere else in Asia.
The city’s talent density and 24x7 corporate ecosystem make it “non-optional” for global tech firms. Even with market cycles, leasing stays resilient because every downturn is followed by GCC hiring, and the city’s flexible office culture absorbs supply steadily.
For commercial investors, BLR is India’s most dependable long-term demand engine.
Hyderabad is surging because companies leaving Bengaluru’s cost pressures are landing in Hitec City and the Financial District, where rentals are 20–30% lower and supply is Grade-A from the start.
The city’s proactive state policies, IT expansions, and life-sciences ecosystem create dual demand (office + R&D).
Residential absorption in Hyderabad is rising sharply, which historically signals future commercial price growth. It’s the “value” market with the fundamentals of a “prime” market.
Pune offers stability because it combines manufacturing, EV/auto R&D, IT/ITeS, and co-working demand, a diversified mix that de-risks vacancy cycles. Hinjawadi, Kharadi, and Baner are seeing consistent corporate migration due to lower attrition, better affordability, and expanding business parks.
For investors, Pune provides mid-range yields with low volatility, making it ideal for balanced portfolios.
NCR remains relevant because Gurugram holds India’s most mature corporate leasing ecosystem outside Mumbai, especially for consulting, BFSI back-offices, and D2C/consumer startups. Noida is gaining momentum due to data centre growth, film city development, and competitive rentals.
NCR gives investors high absorption in Gurugram + strong future upside in Noida, a combination no other region offers.
GIFT City is emerging as India’s forward-looking commercial zone because GCCs, fintechs, and global funds prefer its tax benefits, regulatory clarity, and offshore-onshore hybrid structure. Tokenized real estate, AIF reforms, and foreign capital pilots are transforming how commercial projects are financed.
For investors, GIFT represents the earliest entry into an ecosystem built for global capital flows, not just local demand.
Read our article on Fractional Real Estate vs REITs here.
At PropFTX, the research and management phase is completely carried out by the platform. As an investor, you get to prioritise portfolio growth and exit opportunities.
AI valuation tools and tokenised platforms are transforming how real estate is priced and traded. Investors can now view rent flows, valuation trends, and ownership details in real time.
Tokenisation adds traceability and liquidity to traditionally illiquid assets, bridging the gap between institutional-grade property and retail access.
Commercial real estate in India is no longer the domain of corporations alone. With REITs, fractional platforms, and tokenisation coming together, 2025 is the year real estate investment becomes both digital and democratic.
Whether you start small through PropFTX or go big on direct assets, India’s CRE market offers something it has never had before: accessibility, transparency, and scalable returns.
Yes, 2025 is strong for commercial real estate in India due to stable rental yields, low vacancy rates in major cities, and new frameworks like SM REITs that make investing more transparent.
Mumbai, Bengaluru, Hyderabad, and Pune remain top choices due to high office absorption, consistent rental demand, and infrastructure growth. GIFT City is emerging as a regulated, futuristic hub.
Average rental yields range between 7 - 10% annually, with additional capital appreciation of 4- 6% depending on property type and location.
REITs offer passive exposure to a pool of commercial properties through stock exchanges, while fractional ownership lets you directly co-own specific assets with a smaller ticket size.
Yes, key risks include tenant defaults, changing work models, and liquidity constraints. However, investing through regulated SM REITs or fractional platforms helps reduce these risks.
