Will India Inc Lead the Charge in Office Demand as 85% of Firms Seek Expansion?
Click to start listening
Synopsis
A recent report reveals that a staggering 85% of Indian companies are gearing up to expand their office spaces in the next two years. With global capability centres driving this growth, the office market is witnessing a transformative phase. Discover how this trend shapes India's future as a global office hub.
Key Takeaways
- 85% of firms are expanding their office spaces.
- Global capability centres are driving demand.
- Average GCC deal sizes increased to 108,000 sq ft.
- 94% of companies prefer in-office work at least three days a week.
- Flexible workspaces capture over 15% of the market.
New Delhi, Sep 9 (NationPress) Approximately 85% of local businesses are planning to expand their office spaces in the next two years, increasing from 73% in 2024, as reported on Tuesday.
This anticipated growth in demand for workspaces is projected to be bolstered by an office-first policy and more stringent hybrid working arrangements, according to a report from CBRE South Asia Pvt Ltd.
The drive for expansion is fueled by robust growth in key sectors and the swift digital transformation across various industries. Compared to the pre-COVID-19 era of 2018-19, domestic companies have experienced a striking resurgence in office leasing during 2023–2024, marking an increase of 86%.
The report indicates that around 94% of businesses prefer their staff to work in the office at least three days a week. Additionally, about 52% of the companies surveyed enforce a fully in-office work policy, rising from 36% in 2024.
In addition to flexible workspaces, global capability centres (GCCs) are significantly driving office space demand in India, accounting for a 35-40% share of total annual absorption in recent years.
This trend is backed by a strategic pivot as GCCs evolve from cost-effective back-office operations to innovative hubs focusing on R&D, AI, and core engineering.
About 65% of surveyed GCCs are expected to broaden their portfolios in the coming two years, with sectors like BFSI, life sciences, and engineering and manufacturing leading the charge. Leasing activities reflect this growth trajectory, with the average size of GCC deals increasing from 91,000 sq ft in 2024 to 108,000 sq ft in H1 2025.
Flexible workspace providers have firmly positioned themselves in India's office leasing market, consistently capturing over 15% of the overall annual absorption trends.
“India’s office market is embarking on a pivotal decade characterized by both resilience and transformation. As tenants seek future-ready, high-performance workspaces, the industry must adapt with strategic enhancements, sustainability-driven retrofits, and integrated digital ecosystems,” stated Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE.
This upcoming phase of growth will not only solidify India’s status as a global office hub but also unlock long-term value across the real estate lifecycle, he added.
The survey-report suggests that this momentum is set to persist, with the proportion of companies allocating 26–50% of their portfolio to flexible spaces expected to more than double in the next two years.
Ram Chandnani, Managing Director–Leasing, CBRE India, remarked that GCCs and Indian occupiers are shaping the future of the nation’s office sector.
Point of View
It is evident that the evolving office landscape in India presents significant opportunities and challenges. The current trend of expansion among firms reflects a robust recovery and adaptation to new workplace norms. As we move forward, it is crucial to balance the demands for innovation and flexibility with the need for sustainable practices in real estate.
NationPress
09/09/2025
Frequently Asked Questions
What percentage of firms plans to expand their office space?
Approximately 85% of domestic firms are planning to expand their office portfolio over the next two years.
Which sectors are leading the office space demand?
The BFSI, life sciences, and engineering and manufacturing sectors are leading the demand for office spaces.
What is the trend regarding flexible workspaces?
The report indicates that the number of companies allocating 26–50% of their portfolio to flexible spaces is expected to more than double over the next two years.
