Indian Companies Gear Up for Major Office Expansions Amid Surging Workspace Demand
Hey there, if you’re keeping an eye on India’s booming real estate scene, here’s some exciting news. A fresh report from CBRE South Asia Pvt Ltd shows that a whopping 85% of domestic firms plan to grow their office portfolios in the next two years. That’s a jump from 73% just last year in 2024. This surge in office expansion signals a strong comeback for India’s commercial real estate market, especially after the pandemic shake-up.
What’s driving this office space demand? Experts point to companies sticking to an "office-first" policy and dialing back on super-flexible hybrid work setups. Strong growth in key sectors, plus rapid digitalization across industries, is fueling the fire. Compared to the pre-COVID days of 2018-19, domestic firms have ramped up office leasing by an impressive 86% in 2023-2024. It’s clear that businesses in India are betting big on physical workspaces to boost productivity and innovation.
The report dives deeper into employee preferences too. Around 94% of companies now want their staff in the office at least three days a week. Even better, 52% of surveyed firms have gone full-on with a complete office-based policy, up from 36% in 2024. No more endless Zoom calls for these teams—they’re heading back to the desks!
Global Capability Centres (GCCs) are stealing the show in India’s office leasing trends. These hubs, often set up by multinational firms, make up 35-40% of total annual office space absorption in recent years. They’re evolving from simple back-office operations into powerhouse innovation centers focused on R&D, AI, and core engineering. About 65% of GCCs surveyed plan to expand their office portfolios over the next two years. Leading the charge are sectors like BFSI (banking, financial services, and insurance), life sciences, and engineering & manufacturing. Deal sizes are getting bigger too—average GCC leases hit 108,000 square feet in the first half of 2025, compared to 91,000 sq ft in 2024.
Don’t forget flexible workspaces! These co-working spots have become a staple in India’s commercial real estate, grabbing over 15% of yearly office absorption. The report predicts that more companies will allocate 26-50% of their portfolios to these flexible office spaces, with numbers doubling in the next two years. It’s all about adaptability in this fast-changing market.
Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East & Africa at CBRE, sums it up perfectly: "India’s office market is entering a defining decade, marked by both resilience and reinvention. As occupiers demand future-ready, high-performance workspaces, the industry must respond with strategic upgrades, sustainability-driven retrofits, and digitally integrated ecosystems." He adds that this growth wave will cement India’s spot as a global office hub and create long-term value in real estate.
Ram Chandnani, Managing Director of Leasing at CBRE India, echoes the optimism: GCCs and Indian companies are leading the charge in shaping the future of the country’s office sector. With office leasing activity on the rise and hybrid work policies evolving, India’s commercial real estate looks set for another stellar year. Stay tuned for more updates on workspace trends and business expansions!
