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India’s commercial and retail real estate markets are witnessing a strategic transformation. From sovereign wealth funds to institutional investors, the appetite for Indian assets is deepening, and the nature of partnerships is evolving. Large developers are holding assets, leasing them out, and exploring REIT listings. This asset-hold strategy aligns with global investor preferences for stable, income generating portfolios over fragmented ownership models.
“India is the third-largest market for large private equity players like Blackstone and Brookfield, apart from New York or London,” says Bhavik Vora, Partner, Grant Thornton Bharat. “Most PEs are now raising India-specific real estate funds to cater to global investor demand for focused exposure.”
Legal Reform & Infrastructure Enablement
As India eyes ambitious targets in housing, till today for developers and investors, the lack of digitised, legally enforceable land records continues to be a major bottleneck. Srivals Kumar Founder MyGC Legal highlighted, “Land reforms and digitisation are the starting point. A centralized approach— even at the state level—can fast-track approvals and cut through bureaucracy. State governments are beginning to pilot integrated land dashboards that combine ownership data, zoning regulations, and approval status in real time. However, without legal backing and interoperability across departments, these efforts risk becoming cosmetic.”
Tier 2 & 3 Cities—The Next Frontier
India’s next wave of workspace growth is unfolding beyond the metros. Tier 2 and 3 cities—once considered peripheral—are now central to expansion strategies for co-working operators, startups, and even legacy firms. Rahul Kanungo, National Director, Awfis Space Solutions Limited, notes, “We’re present in 19 cities, many in tier 2 and 3. Cities like Indore and Bhubaneswar are seeing real traction, supported by smart city initiatives. The appeal isn’t just cost-efficiency— it’s cultural readiness. Local talent pools are embracing structured work hours, hybrid models, and professional environments.
In cities like Indore, the 9-to-6 culture is thriving, and office sizes are beginning to rival those in Mumbai and Bengaluru. However, challenges remain. Power supply inconsistencies, patchy last-mile connectivity, and slower approval cycles still hamper scalability.” There is no doubt, the local governments of smaller cities are showing intent—investing in civic upgrades, digital governance, and business-friendly policies and the analysts estimate a 2–3-year roadmap to full readiness for Grade-A commercial developments, provided reforms stay on track.
Retail Evolution & Mixed-Use Growth
The demand for integrated living is rising. Mixed-use formats also align with optimizing land use, reducing carbon footprints, and enabling smarter resource management. For developers and city planners alike, the message is clear: future-ready growth lies in convergence. Retail evolution, and mixed-use planning are no longer siloed strategies—they’re the blueprint for India’s next urban chapter
Rahul Tatiya Jain, Executive Director & Head- Tenant Advisory Group - Mumbai, Cushman & Wakefield Ltd, captures the shift “Retail formats are evolving and once-popular strata sale model is fading, as developers pivot toward leasing-led strategies and REIT-backed portfolios. This shift offers greater control, long-term revenue stability, and access to institutional capital—especially critical in volatile markets. Moreover, the commercial real estate ecosystem is increasingly becoming mixed-use. From Gurugram to Kochi, developers are designing urban microcosms where offices, residences, retail, and healthcare coexist.
In A Nutshell
- Domestic developers are shifting from strata sales to long-term leasing, while tier 2 and 3 cities emerge as new growth hubs.
- Legal reforms, infrastructure upgrades, and digital land records are enabling smoother transactions.
- Managed office spaces and hybrid work models are reshaping occupier preferences.
- Retail is evolving into experiential zones, blending offline and online formats.
- Sustainability is no longer optional—it’s a prerequisite for funding and tenant interest.
- Disclosure norms and SEBI mandates are pushing transparency.
- The rise of mixed-use ecosystems signals a future of micro-cities.
- Global capital is flowing in, driven by REITs, ESG mandates and integrated developments.
