What influence do younger buyers have on India's real estate market?
While the younger generation is not the key decision-makers in real estate deals, they still heavily influence the types of offices businesses build. A workforce made up of people in their twenties and thirties, compared to previous generations, drives expectations substantially beyond old offices. They want amenities aligned with their lifestyle needs, collaborative spaces, and environments meant to be customizable to their needs. The office's location is not their only consideration.
The interior space's features are equally significant. Grocery stores, gyms, nursery facilities, break areas, and well-planned work zones are all important features nowadays. Younger employees prefer holistic campuses that mix convenience, wellness, and employment.
Hybrid work arrangements have also changed office operations. Businesses are increasing conference spaces, collaborative spaces, and tech-enabled reservation systems while decreasing the number of specialised workstations. Managed and flexible office providers have made significant changes to meet these needs for both large companies and startups.
In addition, Tier II and III cities are growing. Cities like Pune and Coimbatore have transformed into thriving business capitals because of their large populations of young, educated people, strong infrastructure and education.
What is the Group’s overall approach to commercial real estate?
Our strategy at India Land is based on two main principles: entering high-growth markets early and providing a complete, service-oriented real estate product.
We focus on identifying cities that are about to experience significant growth. One excellent example is Coimbatore. Few people had faith in its potential when we arrived in 2008. Today, our IT park is one of the largest in the country and has a LEED Platinum certification with an impressive high score. We don’t just build office spaces. We build environments. Our campuses provide community events like yoga classes, reading clubs, and holiday celebrations, as well as recreational facilities, food courts, and fitness facilities. This service layer improves tenant experience and fosters a stronger sense of community.
We also have a strong partnership model with MNC clients. Once a company partners with us, we help it grow in different Indian cities. We ensure that quality and service remain consistent.
Sustainability and AI are becoming more important. Do tenants today have a strong demand for workspaces that are sustainable and prepared for the future?
Naturally. Sustainability is increasingly becoming essential, particularly for global corporations. Sustainable practices fulfil environmental obligations and provide long-term advantages, although sometimes having a greater initial cost. Our environmental endeavours include both operations and construction. We invest in renewable energy by using solar farms in Pune and Coimbatore. Water conservation is another key focus. We are installing systems that treat and recycle water quickly. This lets us use it effectively around campus for cleaning facades, washing cars, and more.
We prioritise reducing energy use and carbon emissions even while the building is underway. For instance, setting up material plants on campus enhances quality control and reduces transportation emissions.
AI is also making a big impact. It helps us monitor utilities and safety, manage workflows, and perform predictive maintenance. AI enables us to run campuses more efficiently. It also helps companies that need to respond to changing workforce demands. This makes flexibility an important leasing factor.
What opportunities and difficulties do India's commercial real estate market currently face?
There are a number of fascinating prospects that are developing. The biggest one is in flexible and managed offices that support companies with changing team structures and hybrid models. Another major opportunity is in Grade-A commercial developments for SMEs and professionals, including doctors, lawyers, designers, and consultants. These groups increasingly prefer modern office environments over converted residential spaces.
In large-format offices, we’re seeing a shift in strategy. Instead of building one massive centre in a city, companies are creating multiple smaller hubs in three different areas. This reduces commute time for employees and gives access to smaller talent pools.
On the challenge side, global tariff situations and economic uncertainty have caused multinational companies to adopt a temporary wait-and-watch approach. Cost sensitivity is another factor; if rental prices exceed certain levels, companies may move to more affordable markets. Differences in infrastructure among Indian cities also affect real estate decisions.
However, in the long run, India’s growth path, urban expansion, and changing workforce expectations make the commercial real estate sector very promising.
