With the rising global population growth, India has also seen a significant rise in its commercial real estate sector
The India Commercial Real Estate Market size is estimated at USD 40.71 billion in 2024, and is expected to reach USD 106.05 billion by 2029, growing at a CAGR of 21.10% during the forecast period (2024-2029). Given this trajectory, buying commercial properties presents lucrative opportunities for long-term returns. However, with these opportunities come significant responsibilities. It is crucial to conduct thorough research and exercise due diligence when making such investments. While commercial real estate typically requires larger capital outlays, a well-informed investment strategy can generate consistent cash flow over time. Here are some vital factors to consider before buying a commercial property.
Before investing in commercial real estate, conducting thorough market research is indispensable. Assess the risk factors associated with both buying new properties and purchasing resales. While a new property might carry higher risks than a good resale, they can also offer better returns if located in a developing area. Evaluate the future growth prospects of the location, as well as the current demand for specific property types—whether office spaces, retail outlets, or industrial warehouses. For instance the IT/ITeS sector remains the largest contributor to office space demand in Pune, accounting for approximately 71% of the total absorption, recording a year-on-year increase of approximately 12% in 2024.
Once you’ve identified your target market, the next key step is selecting a location with strong infrastructure and connectivity. Commercial properties located in areas with strong infrastructure connections—such as highways, subways, airports, and railroads—are likely to attract higher footfall and generate better returns. Accessibility to major business hubs, transportation networks, and visibility play significant roles in the success of your investment. Choose a location with expanding markets, proximity to business districts, and demographic advantages to ensure a steady flow of customers or tenants.
When purchasing commercial property to lease it, understanding the lease structure is crucial. Familiarity with gross and net leases will in turn help in negotiating with potential tenants better. Key factors such as upkeep, repair responsibilities, lock-in periods, and taxes should be carefully evaluated as these elements directly impact the financial viability of your investment and the risk associated with it.
The credibility of the builder or developer is another critical consideration. Opt for a well-established builder with a strong track record of delivering high-quality projects. Scrutinize the developer’s history, seek feedback from previous buyers, and ensure that the builder has proven expertise within the business. This will not only mitigate risks but also enhance the long-term value of your investment.
Commercial real estate offers various types of properties, including retail shops, office buildings, industrial complexes, and serviced commercial outlets (SCOs). Evaluate your budget and select a property type that aligns with your financial goals. Conduct a detailed assessment of the property’s potential to provide returns, both in terms of rental income and capital appreciation, and also one that fits your risk tolerance and long-term goals.
If your strategy involves leasing your commercial property, tenant quality becomes a key determinant of the investment’s success. Reliable tenants, such as multinational corporations (MNCs), can enhance the value of a commercial property by ensuring consistent rent payments, offering higher deposits, and committing to long-term leases. Furthermore, a trustworthy tenant adds to the overall attractiveness of your property for future investors or buyers.
Like any investment, buying commercial properties comes with its risks. It’s essential to evaluate your risk tolerance before deciding on a purchase. Avoid overextending financially, and be sure to continuously monitor market trends, geographic location dynamics, and the property’s historical performance to gauge potential risks.
If you’re new to real estate investments, consulting an experienced real estate expert can be invaluable. Professional consultants and property developers can guide you through the investment process, ensuring all legalities and market dynamics are properly addressed. This will save you time and minimize your costs while streamlining decision-making.
Understanding the value of a commercial property in comparison to other properties in the vicinity is essential for making a prudent investment decision. Research prevailing rental rates in the area, review sales data for comparable properties and negotiate effectively with sellers. Consider various valuation approaches—such as cost, market, income, or sales comparison methods—to ensure that the purchase price aligns with the property’s true market value.
Before finalizing the purchase, ensure that the property’s layout aligns with your expectations. Review building lines, setbacks, and site dimensions. A well-planned layout should include sufficient provisions for open spaces, roads, and essential infrastructure. Additionally, evaluate the adequacy of existing and proposed utility networks, including roads, drainage systems, and power supply connections.
India’s commercial real estate sector is poised for continued growth, driven by economic expansion, urbanization, and technological advancements. By 2030, the sector is expected to reach a valuation of $1 trillion, indicating robust long-term prospects.
A well-thought-out investment strategy, informed by diligent research and expert advice, will position you to capitalize on these opportunities.
While the considerations outlined above are essential, they are by no means exhaustive. In the dynamic world of commercial real estate, factors such as market trends, financial discipline, and location remain paramount. And when in doubt, seeking guidance from a real estate professional is always a prudent course of action.
PUNE, India, May 26, 2025 /PRNewswire/ — Pune’s commercial real estate market has been on a steady rise, with the city recording an 8 million sq. ft. leasing volume in 2024, reflecting a 19% year-on-year increase (Knight Frank, 2025). At the heart of this growth is Kharadi – a neighborhood that has transformed from a developing suburb to one of Pune’s most sought-after business districts. With its strong connectivity to IT hubs, residential areas, and the City’s central business district (CBD), Kharadi has become a magnet for companies seeking well-connected international-standard office spaces.
India’s ultra-high-net-worth individuals (UHNIs) are refining their investment approach toward commercial real estate (CRE). The reassessment currently underway is a strategic recalibration of how capital is deployed, into what it is deployed, and the role commercial real estate plays in a future-proofed portfolio.
Several macro and structural trends are fuelling this shift:
Together, these forces represent a fundamental repositioning. CRE is no longer viewed in isolation as a high-yielding asset. It is now being evaluated as a strategic wealth tool, one that must perform across cycles, align with ESG norms, and support liquidity and succession planning. The reassessment is not about exiting the market, it is about upgrading the playbook. Let’s delve into each aspect shaping this transition.
The first visible shift is a clear move from aggressive expansion to strategic consolidation. Earlier, UHNIs were key participants in land aggregation and greenfield office investments. Today, they are narrowing their focus to high-performing, fully built, income-yielding Grade A assets.
This reflects not just a change in risk appetite, but in investment philosophy. Asset quality, tenant profile, and compliance readiness have taken precedence over speculative upside.
This recalibration is supported by market data. Capital deployment into Indian real estate reached USD 11.4 billion in 2024, a 54% year-on-year growth, largely driven by completed assets and well-located land acquisitions (CBRE).
The new mandate is clear: fewer assets, stronger fundamentals, and consistent rental performance. The next layer of this shift involves how UHNIs prefer to own these assets.
Alongside asset preference, the structure of ownership itself is transforming. UHNIs are moving away from direct, individually held assets or co-invested fragments in family partnerships. Instead, they are leaning into institutional models like REITs, Alternative Investment Funds (AIFs), and managed discretionary platforms.
These structures offer several advantages:
A prime example of this evolution is the scale at which REITs are being capitalised. Embassy Office Parks REIT, India’s largest, has announced plans to raise USD 400 million to meet growing demand for institutional-grade office assets (Reuters).
For UHNIs, these platforms deliver transparency, reduced administrative burden, and exposure to well-performing assets without operational complexity. But ownership models are only one part of the equation, asset performance is increasingly being driven by sustainability metrics.
Environmental, Social, and Governance (ESG) factors have moved from being soft preferences to hard investment filters. Whether driven by SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms or global LP mandates, ESG now shapes portfolio construction.
As of end-2024, 66% of Grade A office stock across India’s top six cities was green-certified, amounting to 503 million sq ft. More notably, over 75% of all leasing in 2024 took place in green-certified buildings, underscoring a structural market shift, not a passing trend (Colliers).
This growing preference for sustainable assets is not confined to new supply. Developers are actively retrofitting older buildings to improve ESG scores, unlocking a market opportunity worth over INR 425 billion (Colliers). This ESG integration is not only about compliance. It is now a strategic lever for:
Air quality monitoring, energy efficiency systems, waste reduction, and wellness infrastructure are now prerequisites for future-ready CRE portfolios. This reorientation towards quality and compliance also aligns with a deeper concern: preparing assets for smooth intergenerational transfer.
A critical driver behind the reassessment is the growing need for estate readiness and wealth continuity. UHNIs are increasingly viewing CRE through the lens of transferability, ease of governance, and long-term asset hygiene.
Family offices are prioritising:
This is particularly relevant as the first generation of Indian wealth transitions to the next. Structures that offer transparency, liquidity, and minimal transfer friction are being favoured over legacy holdings that are operationally burdensome or non-compliant. CRE is no longer just a source of income, it is now also a critical estate planning tool.
As India's commercial real estate evolves, UHNIs are sharpening their lens, filtering for transparency, yield resilience, and ESG alignment. The shift is not about cutting exposure, but about elevating the quality of exposure.
At SQUAREA, we specialise in helping investors navigate this next cycle. From REIT entry strategies to pre-leased Grade A assets and co-investment platforms, our advisory ensures alignment with your long-term capital goals and risk appetite.
To learn more or build your next strategic CRE allocation, connect with us at hello@squarea.io or call +91 90 9641 9641.
Dubai is no longer just a regional powerhouse. It has become a magnet for global wealth migration. With over 7,200 millionaires relocating to the UAE in 2024 alone (Henley & Partners), the city continues to attract global citizens seeking more than just a residence. They are drawn by the promise of long-term value, enhanced security, and greater global mobility.
This movement is mirrored in Dubai’s real estate performance, particularly in the ultra-luxury space. From waterfront addresses like Palm Jumeirah to the estates of Emirates Hills, Dubai has emerged as one of the world’s most desirable second-home markets.
The continued inflow of global wealth is directly influencing Dubai’s prime real estate transactions. These are not short-term purchases, they are strategic moves by UHNWIs securing global bases for family and capital. Supporting this trend are record-setting figures:
These exceptional figures reflect not just transactional momentum but the deeper structural advantages that continue to position Dubai as the preferred second-home destination for global investors.
What makes Dubai stand out among other international hubs like London, Singapore, or New York? The answer lies in a combination of access, security, tax neutrality, and lifestyle quality, each carefully embedded into the city’s long-term master plan.
These frameworks offer the predictability, control, and legal clarity that high-net-worth individuals expect when allocating capital across borders.
This commitment to quality of life ensures Dubai meets the expectations of discerning residents seeking security, comfort, and day-to-day efficiency.
This strategic geographic positioning reinforces Dubai’s appeal as a seamlessly connected global hub, an essential factor for mobile, asset-diverse investors.
This foundation of monetary and legal stability makes Dubai a credible, future-ready base for strategic asset holding.
These elements make Dubai more than just a part-time residence. It becomes a second base for entertaining, living, and integrating family, leisure, and business with ease.
Dubai’s rise as a preferred second-home destination is no coincidence, it is the result of deliberate, long-term planning around ownership freedom, tax neutrality, and global connectivity. As millionaire migration and wealth redistribution accelerate globally, Dubai is setting a new benchmark for what a second home can represent.
At SQUAREA, we offer discerning investors access to Dubai’s most coveted residential assets, from waterfront villas to branded residences, curated to align with both lifestyle aspirations and capital strategy.
For bespoke opportunities, contact us at hello@squarea.io or call +91 90 9641 9641.