India's Office Space Market Set to Boom as 85% of Firms Plan Expansion in Two Years: CBRE Report
India's office market is poised for significant growth, with 85% of domestic firms planning to expand their office space over the next two years, according to a recent report by CBRE. The survey highlights strong business sentiment, digital adoption, and a shift towards office-first policies.
Office SpaceCbreExpansionReal EstateIndiaReal Estate NewsSep 13, 2025
The report noted that companies have bounced back strongly since the pandemic years. Leasing by domestic firms during 2023-24 was nearly 86% higher compared to pre-Covid levels in 2018-19. “India’s office market is entering a defining decade, marked by both resilience and reinvention,” said Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, the Middle East & Africa.
Office-first policies are gaining ground, with 94% of firms now preferring employees to work from the office at least three days a week. More than half the companies (52%) have already adopted a full return-to-office policy, compared with 36% last year.
Flexible workspaces continue to hold a significant share of India’s office leasing, consistently accounting for over 15% of annual absorption. 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, in particular, are leading this shift, with 58% of them intending to place more than 10% of their office footprint in flex spaces within two years, according to the CBRE report.
Global capability centres (GCCs) remain one of the strongest demand drivers, contributing 35-40% of total annual office absorption. The survey found that 65% of GCCs expect to expand in the next two years, especially in sectors such as banking and financial services, life sciences, and engineering. Average deal sizes by GCCs have also grown, rising to about 108,000 sq. ft. in the first half of 2025 from 91,000 sq. ft. in 2024, the report added.
Ram Chandnani, Managing Director-Leasing, CBRE India, said, “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 eyeing tier-II and tier-III cities for growth, citing access to skilled talent, lower costs, and improving infrastructure, CBRE said.
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.
Frequently Asked Questions
What percentage of firms plan to expand their office space in the next two years?
According to CBRE's India Office Occupier Survey 2025, 85% of domestic firms plan to expand their office space over the next two years.
How has office space leasing by domestic firms changed since the pandemic?
Leasing by domestic firms during 2023-24 was nearly 86% higher compared to pre-Covid levels in 2018-19, indicating a strong recovery and growth in office space demand.
What is the trend in flexible workspaces in India?
Flex space operators continue to hold a significant share of India’s office leasing, consistently accounting for over 15% of annual absorption. More companies are planning to allocate up to half of their office portfolios to flexible workspaces in the coming years.
How are global capability centres (GCCs) impacting office space demand?
GCCs remain a strong demand driver, contributing 35-40% of total annual office absorption. 65% of GCCs expect to expand in the next two years, especially in sectors like banking, financial services, life sciences, and engineering.
What role is sustainability playing in the office space market?
Sustainability has emerged as a key focus, with nearly three-fourths of GCCs already setting ESG targets for their real estate portfolios. More occupiers are also looking at tier-II and tier-III cities for growth due to lower costs and improving infrastructure.
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