2025 India Alternate Sectors Outlook

Presenting the 2025 India Market Outlook, our flagship publication providing a comprehensive view of the country’s real estate sector. Leveraging rigorous research and expert insights, this report analyses the current market dynamics at the close of FY2025 and offers a strategic forecast of future trends across segments.

Alternate real estate sectors:

·         Data centres—Projections indicate a Y-o-Y increase of ~40% in India’s total DC stock for 2025, potentially reaching ~1,760 MW, driven by a planned supply addition of ~490 MW. This growth is anticipated to be primarily concentrated in Mumbai, Chennai, Delhi-NCR, and Bengaluru.

·         Flexible spaces—Organisations are expected to further embrace hybrid work models, driving sustained demand for flexible workspace solutions that adapt to evolving workforce needs. Demand is expected to expand beyond the technology sector, with growing contributions from BFSI services, E&M, and other industries.

·         Life sciences—India’s life sciences sector is poised for substantial growth in the coming years. This expansion would be fuelled by supportive policy reforms, infrastructural development, increased FDI, enhanced manufacturing capabilities, a readily available and cost-effective skilled talent pool, and a growing emphasis on R&D.

·         Hospitality­—The anticipated resurgence of private consumption expenditure is expected to propel the growth of experience-driven domestic tourism. India’s MICE market is poised for significant expansion, while over 9,000 new hotel rooms are forecasted to be developed in destinations of spiritual significance by 2030.

·         Education—India's expansive education sector benefits from multiple targeted government policies and significant fiscal support. However, to fully actualise the transformative goals of the National Education Policy 2020, a strategic increase in GDP allocation is imperative.

·         Healthcare—Once considered a niche segment, healthcare has emerged as a prominent investment asset class worldwide, driven by evolving epidemiological trends and heightened patient expectations. India's sustained healthcare infrastructure development is expected to catalyse specific trends within various real estate asset classes.

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