India's commercial real estate market is going through a shift. Retail and office spaces are no longer being viewed as separate asset classes. As businesses expand, consumer spending rises and Global Capability Centres (GCCs) increase their presence, integrated developments are gaining popularity. These projects bring Grade A office spaces together with high-quality retail and are emerging as attractive investment destinations.
Office leasing in India has reached record levels, driven largely by the expansion of GCCs and multinational companies. The retail sector has also recorded strong leasing activity. Industry sources estimate that around 8.9 million sq. ft. of retail space was leased in India in 2025, supported by demand from fashion, food and beverage, and experiential brands. At the same time, GCCs accounted for more than 40% of Grade A office leasing, reflecting growing confidence among global companies in India's business environment. This trend is encouraging developers to create integrated destinations where people can work, shop, eat and unwind in one place.
Commenting on the changing market, Harpreet Singh Hora, Director, Reach Group, said, "The future of office spaces will be shaped by innovation, connectivity and flexibility. Companies are increasingly looking for workplaces that combine technology, sustainability and features that improve employee well-being. These changing needs are encouraging developers to create smarter and more future-ready commercial spaces."
Dr. Amish Bhutani, Managing Director, Group 108, said retail and commercial developments are now playing a much larger role in India's economic growth.
"Their importance goes beyond simply offering space for businesses. These developments are becoming lively destinations that combine commerce, convenience and everyday experiences. As consumer habits change, projects that bring together shopping, dining, entertainment and workplaces are becoming more relevant. Businesses are also looking for locations with good connectivity, strong infrastructure and an environment that supports long-term growth. We believe this trend will continue to influence India's urban development and create sustainable value for businesses, communities and investors," he said.
Ajendra Singh, Vice-President of Sales and Marketing at Spectrum@Metro, also highlighted the growing overlap between retail and commercial real estate.
"The line between retail and commercial real estate is becoming increasingly unclear. Consumers want convenience, while businesses are looking for vibrant ecosystems that attract talent and encourage innovation. Mixed-use developments that combine offices, retail, entertainment and hospitality are emerging as sustainable urban destinations. This model is likely to play a major role in shaping the future of commercial real estate in India's business districts," he said.
Azad Ahmad Lone, President, Business Development and Operations, Biigtech, said the next phase of commercial real estate will focus on creating complete business destinations. These will bring together offices, retail outlets, dining options and other facilities. "Today's occupiers expect more than just office space. They want an environment that improves their overall experience and supports business growth. The demand for mixed-use commercial projects is increasing because they offer convenience and can generate higher footfall. With better infrastructure and continued corporate expansion, such developments are expected to remain an important part of India's commercial real estate sector," he said.
With corporate growth, consumer demand and infrastructure development moving ahead together, the convergence of retail and commercial real estate is expected to become an important driver of India's property market. Developers that focus on future-ready, experience-led mixed-use projects are likely to attract both businesses and consumers.
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