India's Office Space Market Set to Boom as 85% Firms Plan Expansion in Two Years: CBRE Report
Office space demand in India is set to soar, with 85% of domestic firms planning to expand their portfolios over the next two years, according to a report by real estate consultancy firm CBRE. This represents a significant increase from 73% in 2024, reflecting a strong business sentiment, digital adoption, and a growing preference for office-first approaches.
The report highlights that companies have rebounded strongly since the pandemic. Leasing by domestic firms during 2023-24 was nearly 86% higher compared to pre-Covid levels in 2018-19. Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, the Middle East & Africa, stated, “India’s office market is entering a defining decade, marked by both resilience and reinvention.”
Office-first policies are gaining ground, with 94% of firms now preferring employees to work from the office at least three days a week. Over half of the companies (52%) have already implemented a full return-to-office policy, up from 36% last year.
Flexible workspaces are also on the rise, consistently accounting for over 15% of annual office leasing. The trend is expected to accelerate, with more companies planning to allocate up to half of their office portfolios to flexible workspaces in the coming years. Smaller occupiers are leading this shift, with 58% of them intending to place more than 10% of their office footprint in flex spaces within two years.
Global capability centres (GCCs) remain a strong demand driver, contributing 35-40% of total annual office absorption. The survey found that 65% of GCCs expect to expand in the next two years, particularly in sectors such as banking and financial services, life sciences, and engineering. Average deal sizes by GCCs have also increased, rising to about 108,000 sq. ft. in the first half of 2025 from 91,000 sq. ft. in 2024.
Ram Chandnani, Managing Director-Leasing, CBRE India, commented, “GCCs alone account for about 35-40% of absorption, driven by their rapid evolution into high-value innovation hubs. Flexible workspaces are no longer a secondary option; they are becoming integral to occupier strategies.”
Sustainability has emerged as a key focus, with nearly three-fourths of GCCs already setting ESG targets for their real estate portfolios. At the same time, more occupiers are exploring tier-II and tier-III cities for growth, citing access to skilled talent, lower costs, and improving infrastructure.
CBRE expects these forces — office-first strategies, flex space adoption, GCC expansion, and sustainability — to shape India’s office market in the years ahead, reinforcing the country’s position as a global office hub.
