Equirus Capital, a Mumbai-based full-service investment banking firm, has released insights on India’s real estate sector, highlighting robust growth across residential, commercial, retail, hospitality, and SEZ segments. Demand for commercial space in the top eight Indian cities grew at an 11 per cent CAGR between 2020 and 2025, rising from 39.3 million sq ft to 66.4 million sq ft. 

Bengaluru has emerged as one of the most cost-effective workforce hubs globally, with operating costs nearly 81 per cent lower than Tier-II US cities. For comparison, the per FTE cost in a Tier-II US city (indexed at 100) stands at just 19 in Bengaluru as of FY23. 

Global absorption trends also underline India’s rising prominence. Between CY2016 and 9MCY2024, Bengaluru recorded net absorption of 75.2 million sq ft, followed by Tokyo at 52 million sq ft and Mumbai Metropolitan Region (MMR) at 39.6 million sq ft, while major global hubs like New York and London reported negative absorption. 

  

On rentals, Indian metros continue to offer world-class office spaces at competitive rates. As of Q3CY24, London recorded the highest rentals at $207 per sq ft per year, while New York stood at $82, Tokyo at $76, Beijing at $56, and Hong Kong at $70. In contrast, Mumbai and Bengaluru offered the most affordable rentals globally at $27 per sq ft per year.