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Below the Year ender Quote on Commercial Real Estate: 2025 in Review & What to Expect in 2026 by Mr. Sudarshan Lodha, Co-founder & CEO, Strata

“2025 has been a year of clear structural consolidation for India’s commercial real estate market. Office leasing is set to surpass 80 million sq. ft., led by the sustained momentum of Global Capability Centres (GCCs), which today account for nearly 40% of overall demand. What is even more encouraging is that this growth is no longer concentrated in the metros alone. Tier 2 and Tier 3 cities have now emerged as credible destinations for both occupiers and long-term capital. Alongside this, industrial and logistics assets have continued to attract steady interest, while private credit stepped in at a crucial time to support mid-stage construction and project execution. The continued compression in vacancy levels showcases the depth of real demand and the resilience of this cycle.

Looking ahead, the forces that shaped 2025 are durable and point to a strong 2026. GCC expansion is becoming increasingly predictable, with requirements estimated at 50–55 million sq. ft. of incremental office space over the next two years. We also expect capital to broaden its geographic lens, with emerging cities becoming deliberate portfolio allocations. Private credit will remain central given the significant need for mid-stage development, creating compelling opportunities for institutional and retail investors. Distress-led opportunities are likely to widen in 2026 owing to supply-demand imbalances. Healthcare real estate is also drawing growing investor interest as healthcare infrastructure expands across the country. While the flight to quality within Grade A offices will continue, the meaningful shift will be the growing confidence of capital to follow demand into new corridors and into asset classes like industrial, logistics and data centres.”

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