Quick Commerce Reshapes Urban Consumption

India’s quick-commerce sector is rapidly changing how urban consumers shop, with delivery platforms expanding well beyond groceries into categories such as electronics, apparel and household products.

At the centre of this shift are dark stores — compact fulfilment centres located close to residential areas and designed exclusively for online orders. These facilities typically range from 1,500 to 10,000 sq. ft., allowing operators to fulfil neighbourhood demand within minutes. 

As of July 2026, India had 5,625 mapped dark stores, representing approximately 13 million sq. ft. of hyperlocal fulfilment space. The country’s current dark-store density stands at around 50 sq. ft. per 1,000 people. 

Neighbourhood Logistics Becomes a Strategic Asset

The expansion of quick commerce is being supported by India’s young, digitally connected population of more than 1.4 billion consumers, alongside rising incomes and widespread adoption of digital payments. Together, these trends are strengthening demand for convenience and near-instant access to everyday goods. 

The market is already concentrated among major operators, while the page 2 market overview shows substantial dark-store networks across key states and metropolitan areas. This growing footprint highlights how small, strategically located urban spaces are evolving into valuable last-mile logistics assets.

As fast delivery becomes a normal part of everyday consumption, property close to dense residential catchments may become increasingly important to fulfilment operators. 

Outlook

India’s quick-commerce expansion is likely to continue strengthening demand for well-located neighbourhood logistics space. For property investors and developers, the opportunity lies in assets that combine high population density, strong connectivity and proximity to consumers, as last-mile delivery becomes an increasingly important part of the urban real estate landscape.

The contents of this article were contributed by Manu Bhazin, Head of IQI India.

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Retail Leasing Reaches a Four-Year High

India’s organised retail real estate market recorded its strongest first-half leasing performance in four years, with gross leasing reaching approximately 3.9 million sq. ft. in H1 2026, up 20% year-on-year.

Domestic retailers remained the dominant force, accounting for 79.1% of total leasing activity. At the same time, international brands accelerated their expansion, with leasing by overseas retailers increasing 62.1% year-on-year.

Fashion and apparel represented the largest share of leasing at 40%, followed by food and beverage at 14% and entertainment at 9%, highlighting the continued importance of lifestyle and experience-led retail formats. 

New Supply and Infrastructure Support Expansion

The supply side is beginning to respond to stronger demand. Around 0.9 million sq. ft. of new retail space became operational during the first half of 2026, all located in Delhi-NCR.

Looking further ahead, India has more than 45 million sq. ft. of retail developments in the pipeline through 2030.

Infrastructure improvements, including metro expansions and ring roads, are also expected to expand consumer catchment areas and support the emergence of new retail micro-markets.

Outlook

India’s organised retail property sector maintains a positive long-term outlook, supported by growing domestic brands, stronger participation from international retailers and rising consumer spending power.

The next phase of growth is likely to be driven not simply by additional retail space, but by better locations, stronger tenant mixes and more experience-led destinations.

For developers and investors, this suggests that quality, connectivity and the ability to attract leading brands will become increasingly important as India’s retail real estate market expands.

The contents of this article were contributed by Manu Bhazin, Head of IQI India.

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Institutional Investment Reaches a New High

Institutional investment in India’s real estate sector reached USD 4.1 billion during the first half of 2026, representing a 58% year-on-year increase.

This was the strongest first-half performance recorded since the pandemic, highlighting renewed confidence in India’s property market despite continued uncertainty in the global economy.

The second quarter alone attracted USD 2.7 billion in investment. Domestic investors accounted for 58% of total Q2 inflows, showing strong local confidence in the market’s long-term potential and growth prospects. 

Commercial Real Estate Leads Capital Inflows

Commercial real estate continued to attract the largest share of institutional capital. Demand was supported by the expansion of Global Capability Centres, corporate growth and the resilience of India’s Grade A office market.

India’s investment momentum also reflects the increasing maturity of its real estate sector. Greater regulatory transparency through RERA, stronger corporate governance and rising participation from REITs have helped improve confidence among institutional investors.

A steady pipeline of investment-grade assets is also giving both domestic and international investors more opportunities to enter the market. Meanwhile, rapid infrastructure development, urban expansion and strong economic fundamentals continue to strengthen India’s position as a major Asian investment destination.

Outlook

India’s real estate market is expected to remain attractive to long-term institutional investors, particularly within the commercial and Grade A office segments.

Continued demand from corporations and Global Capability Centres should support investment activity. Stronger regulations, improving transparency and greater REIT participation may also encourage more capital inflows.

However, investors are likely to remain selective, prioritising well-managed assets in established cities and high-growth locations with strong infrastructure, tenant demand and long-term income potential.

The post India Real Estate Investment Outlook 2026: Institutional Capital Hits Post-Pandemic High appeared first on IQI Blog.

NCR Residential Market Shifts Toward Branded Developers

India’s National Capital Region (NCR) residential market is entering a new phase, led by the rising presence of national developers and stronger buyer preference for trusted brands.

Between 2022 and Q1 2026, leading national developers launched more than 15,000 residential units across NCR. This reflects a clear shift in buyer expectations, with purchasers placing greater value on timely delivery, stronger governance, superior amenities and execution trust.

Major national players are also reshaping the competitive landscape. In the NCR launch share, Godrej Propertiesaccounted for 47%, followed by Prestige Group at 27%, Sobha Ltd at 10%, and others at 16%.

Infrastructure is a major growth driver. Projects such as the Dwarka Expressway, Noida International Airport, Delhi-Mumbai Expressway, RRTS, Sohna Corridor and expanding metro networks are improving connectivity and opening up new residential corridors across NCR. These developments are making previously peripheral locations more attractive to both end-users and investors. 

Premium and Luxury Homes Lead New Supply

National developers are focusing heavily on the premium and luxury segments, where larger apartment layouts are becoming the norm.

Average unit sizes across new launches now stand at around 1,830 sq ft for 3BHKs, 2,600 sq ft for 4BHKs, and over 4,400 sq ft for 5BHK residences. This points to stronger demand from affluent buyers seeking lifestyle-led communities, larger living spaces and better project quality.

Gurugram remains the leading launch market, accounting for 47% of national developer launches, followed by Ghaziabad at 27%, Noida at 13% and Greater Noida at 12%.

Outlook

NCR’s residential market is likely to remain driven by branded supply, infrastructure growth and rising buyer expectations.

As competition increases, overall standards in design, transparency and delivery should continue to improve, ultimately benefiting NCR homebuyers.

The post India Property Market July 2026: NCR Enters a New Era of Branded Development appeared first on IQI Blog.

India’s commercial real estate sector is entering a new phase of growth, supported by strong economic expansion, rising business activity, and growing demand for high-quality office space. Valued at US$50.29 billion in 2024, the sector is projected to grow at a CAGR of 18.5% through 2030, making it one of the fastest-growing segments within India’s property market.

Record Office Demand Drives Market Momentum

The office market started 2026 on a strong footing, recording historic absorption levels across major cities. Leasing activity remained robust as businesses continued expanding operations, while new supply remained relatively limited in key commercial hubs.

A major contributor to this growth is the continued expansion of Global Capability Centres (GCCs), which account for a significant share of office demand. At the same time, multinational corporations and Fortune 500 companies continue increasing their presence across major business districts, reinforcing India’s position as a leading global office market.

Grade-A Offices Become the Preferred Choice

One of the strongest trends shaping the market is the growing preference for Grade-A and ESG-compliant office spaces. Occupiers are increasingly prioritising sustainable, energy-efficient, and modern workplace environments that align with long-term corporate goals.

This shift is creating stronger demand for premium office assets while older secondary office buildings face higher vacancy levels. Combined with limited new completions, the trend is supporting rental growth and strengthening landlord bargaining power across major Tier-1 cities.

Tightening Supply Supports Long-Term Growth

The combination of strong leasing demand and tightening vacancy levels is creating favourable conditions for investors and developers. Vacancy rates across India’s office market have fallen significantly, reflecting healthy occupier demand and improving market fundamentals.

Supported by infrastructure upgrades, economic growth, and rising institutional investment, commercial real estate is increasingly viewed not only as a business necessity but also as a long-term investment opportunity.

Outlook

India’s commercial real estate market is expected to remain one of the strongest-performing property sectors in Asia. Demand for Grade-A office buildings, GCC expansion, and sustainable workspaces should continue driving leasing activity and rental growth. As supply tightens and occupier demand remains healthy, the sector appears well-positioned for sustained long-term growth through the remainder of 2026 and beyond.

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India’s property sector is undergoing a major technology shift, with AI and digital twin tools helping the industry move away from guesswork and toward more accurate, data-led decisions.

From planning approvals to construction and investment analysis, technology is becoming a stronger part of how real estate projects are designed, approved and managed.

AI Speeds Up Property Approvals

In Mumbai, the Brihanmumbai Municipal Corporation is preparing to launch an AI-powered facility to automate the approval process.

This system will allow developers and architects to submit applications, track progress in real time and use AI tools for document verification and compliance checks.

Digital Twins Improve Construction Planning

In tech-driven cities such as Hyderabad and Bengaluru, developers are using digital twin technology to create 3D virtual replicas of townships before construction begins.

These models can simulate wind flow, heat island effects and traffic movement, helping developers plan more efficient and climate-resilient buildings. The approach can also reduce construction waste by around 15%, making it more attractive to ESG-focused investors.

Smarter Investment and Building Management

AI is also changing the investment and post-handover stage. Predictive analytics can help investors assess future pricing confidence by comparing planned infrastructure with local economic trends.

After completion, smart grids can adjust utility usage based on occupancy, helping reduce maintenance costs by up to 30%.

Outlook

India’s real estate market is becoming more efficient, transparent and future-ready as digital adoption accelerates.

AI and digital twins are expected to play a larger role in reducing delays, improving project quality and helping investors make better decisions. For developers, investors and buyers, the next phase of India’s property growth will not only be driven by demand, but also by smarter technology.

The post India Real Estate Enters a New Era as AI and Digital Twins Transform the Market appeared first on IQI Blog.

India’s Property Market Shifts Toward Land-Based Luxury Living

India’s real estate market is entering a new phase in 2026, driven by rising wealth and changing lifestyle priorities. Affluent buyers are increasingly moving away from traditional urban apartments, favouring land-based second homes and managed farmhouse communities that offer privacy, space, and long-term value.

Strong Demand for Plotted Developments and Lifestyle Assets

Demand for plotted developments surged significantly, reflecting a clear shift towards low-density living. High-net-worth buyers are prioritising ownership of land combined with lifestyle features such as gated communities, green spaces, and curated amenities.

This trend is further supported by the rapid growth of India’s ultra-high-net-worth population, which is expected to expand strongly in the coming years, increasing demand for premium real estate assets that deliver both lifestyle and capital appreciation.

Infrastructure and Scarcity Driving Long-Term Value

The investment appeal of these developments is anchored in three key drivers: limited land supply, improving infrastructure, and long-term capital growth. As connectivity improves through expressways, metro lines, and regional airports, land values in emerging corridors are seeing faster appreciation.

Popular leisure destinations such as Goa, Alibaug, Lonavala, and Rishikesh are becoming hotspots for second-home buyers, supported by tourism demand and strong short-term rental potential.

Outlook

Looking ahead, India’s real estate market is expected to strengthen further as wealth creation accelerates and infrastructure continues to expand. Land-based developments and second homes will remain key growth segments, offering investors both lifestyle appeal and strong long-term appreciation potential.

The post India’s Luxury Property Boom: Why Farmhouse Communities and Second Homes Are Rising in 2026 appeared first on IQI Blog.

India’s warehousing and logistics real estate sector has entered a decisive growth phase, underpinned by structural shifts in consumption, manufacturing, and supply-chain strategy. Rapid e-commerce expansion, the rise of organised retail, and sustained government focus on infrastructure and policy reforms have collectively transformed the sector into one of the most resilient real estate asset classes in the country. 

Industrial and warehousing leasing across India’s top eight cities reached 36.9 million sq ft in 2025, reflecting a 16% year-on-year increase and one of the strongest performances recorded in recent years. With momentum remaining strong, gross leasing is expected to cross 60 million sq ft by year-end, setting a new benchmark for the logistics and industrial market.  

Demand continues to broaden geographically. While Delhi-NCR and Chennai led absorption -together accounting for nearly half of total leasing -the increasing penetration of Tier-2 locations is reshaping India’s logistics map. This decentralisation, combined with the emergence of integrated logistics parks and built-to-suit facilities, has made India’s ambition of reaching 850 million sq ft of warehousing stock by 2030 increasingly achievable.  

Third-party logistics (3PL) operators remained the largest occupiers, contributing roughly one-third of total demand, while engineering and e-commerce players continued to scale up operations. Notably, large-format transactions above 200,000 sq ft formed nearly 45% of total absorption, indicating strong occupier confidence and a clear shift toward consolidation and scale.  

With initiatives such as “Make in India,” PLI schemes, and logistics modernisation gaining traction, India’s warehousing market is well-positioned for sustained, long-term growth. 

The post India’s Warehousing & Logistics Real Estate Emerges as a Core Growth Engine appeared first on IQI Blog.

Written by Manu Bhazan, Country Head of India 

India’s retail sector is entering a period of structural transformation, driven by rising disposable incomes, rapid urbanisation, and growing demand for premium consumer experiences.

These forces are positioning India as one of the strongest retail growth markets globally. 

India’s Tier 1 cities led retail rental growth in the APAC region. Galleria Market recorded a 25 percent year-on-year increase, followed by Connaught Place at 14 percent and Kemps Corner at 10 percent.

Across 16 tracked retail locations, average rental growth reached 6 percent, outperforming both global and APAC averages.

In contrast, Khan Market saw a more modest 3 percent increase, signalling a shift in retailer preference toward emerging, consumption-led neighbourhood hubs. 

Galleria Market’s ascent was also reflected globally, climbing to 26th in APAC rankings in 2025, up from 31st last year, with annual rents of $169 per sq ft.

Connaught Place ranked alongside it at 26th, supported by strong leasing momentum. 

High streets remain central to India’s retail landscape, accounting for over 50 percent of year-to-date leasing activity.

Supported by sustained GDP growth, urbanisation, and an expanding middle and affluent class, consumer spending on dining, fashion, wellness, and lifestyle categories continues to rise.

Combined with limited high-quality retail supply, these dynamics have positioned India’s retail sector as a clear regional outperformer. 

The post India’s Retail Market Emerges as a Regional Growth Leader  appeared first on IQI Blog.

Written by Manu Bhazin, Country Head of India 

India’s retail industry is undergoing a major transformation, fuelled by rising disposable incomes, rapid urbanisation, a young demographic profile and growing appetite for premium consumer experiences.

According to BCG–RAI, the retail sector valued at ₹82 lakh crore in 2024 is projected to surpass ₹190 lakh crore by 2034, driven largely by the expanding middle-income segment and strong discretionary spending in fashion, F&B, beauty and entertainment.

On the real estate front, India has added 18.6 million sq. ft. of mall supply in the last five years, bringing Grade A retail stock to 88.7 million sq. ft., with Mumbai, Delhi-NCR and Bengaluru contributing 63% of this inventory.

Retail leasing has also remained remarkably resilient, with over 22 million sq. ft. absorbed since 2023, supported by international brand entries, growing retail REIT activity and strong institutional interest. 

At the same time, India’s retail real estate is evolving toward experience-led formats, with new malls becoming larger, averaging over 1 million sq. Ft. and focused on entertainment zones, destination dining, wellness and social experiences.

This marks a clear shift in consumer behaviour as malls transition from shopping venues to multi-purpose lifestyle destinations. The combined effect of rising demand, sophisticated brands, and modern mall infrastructure signals the emergence of a more competitive and globally aligned retail ecosystem.

As India enters its next phase of economic rise, its retail landscape is becoming bigger, bolder and more experiential, reflecting the confidence of a young and rapidly growing consumer-driven nation. 

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