India's Real Estate Sees Institutional Growth and Rising Grade-A Office Demand Amid Uncertainties

India's real estate sector is undergoing a structural shift from liquidity-driven cycles to institutional, governance-led investing, with annual institutional inflows exceeding USD 5-6 billion. Grade-A office spaces are experiencing increased absorption and declining vacancy rates, supported by demand from global capability centers and flexible-space operators. However, uncertainties remain around AI's impact on office demand and potential reductions in IT sector leasing. Listed REITs report high committed occupancy and steady rental growth, reflecting evolving market dynamics.