India Inc Drives Demand For Office Spaces, CBRE Survey Finds

India’s domestic firms are set to become a dominant force in the commercial real estate market, with 85% planning to expand their office footprint by 2027, as revealed in CBRE’s latest India Office Occupier Survey 2025.

This marks a sharp increase from 73% in 2024, indicating robust optimism fuelled by digitalisation and economic recovery.

Compared to pre-COVID levels in 2018-19, domestic occupiers recorded an 86% surge in office leasing activity during 2023–2024.

Sectors such as BFSI, life sciences, and engineering continue to show strong momentum, supported by an office-first policy and evolving hybrid work norms.

The report found that 94% of companies want employees in the office at least three days a week.

Moreover, 52% of firms now follow a full office-based work policy, up from 36% in 2024.

Rise of Flexible Workspaces

Flexible workspace operators are solidifying their position, consistently accounting for over 15% of annual office space absorption.

The report predicts that companies allocating 26–50% of their real estate to flex spaces will more than double in the next two years.

Notably, 58% of small occupiers and 52% of large firms expect to increase their share of flexible offices by 2027.

Global Capability Centres (GCCs) remain a key growth driver, contributing 35–40% to annual leasing activity.

These centres are evolving from back-office support units into strategic innovation hubs, focusing on AI, R&D, and core engineering.

About 65% of surveyed GCCs plan to grow their portfolios over the next two years. The average deal size for GCCs has increased to 108,000 sq ft in the first half of 2025, up from 91,000 sq ft in 2024.

In line with sustainability goals, 75% of GCCs have now adopted ESG frameworks for their real estate strategies, reflecting the growing emphasis on green and efficient workspaces.

The survey also highlights a growing interest among companies to expand into tier-II and tier-III cities.

These emerging urban centres are attracting occupiers due to their skilled talent base, affordable operating costs, and improving infrastructure and connectivity.

Ram Chandnani, Managing Director – Leasing, CBRE India, noted, “India’s office market is being reshaped by GCCs and domestic firms alike. Their shift toward innovation and sustainability will define the next chapter of workplace evolution.”

As India Inc continues to adapt to a changing global and digital landscape, the future of its office space appears expansive, inclusive, and strategically aligned with new-age working models.

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