India's Real Estate Market Poised to Meet Global Workspace Demand

Mumbai: As global firms recalibrate their footprints, India is braced for intensified demand — not just for space, but for future-ready, flexible environments that can deliver performance, resilience, and purposeful design in equal measure, a new report said on Monday.

Global corporates are targeting over 100 million square feet of new workspace as disruption drives a new wave of real estate demand. As many as 63 per cent of the corporate real estate leaders surveyed expressed concern about economic and geopolitical volatility. However, instead of freezing decision-making, companies are taking action by building optionality into their space strategies, including shorter leases, more flexible formats, and locations that align with risk diversification and talent access, said the report by Knight Frank.

In India, this shift is already underway. Office leasing in the country reached 71.9 million square feet in 2024 — a 21 per cent year-over-year growth — while 2025 has started on a strong footing, clocking 28.2 million square feet in Q1 alone, up 74 per cent year-over-year, said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

“Corporate real estate complexities today are being shaped by a convergence of strategic alignment, operational volatility, and fast-evolving workstyles — all against a backdrop of compressed timelines and cost discipline. The CRE function is no longer reacting from the sidelines but is being repositioned at the centre of enterprise transformation,” Baijal added.

Far from pulling back, many corporates are accelerating change. About 50 per cent of respondents expect their total footprint to grow over the next three to five years, the equivalent of 104 million square feet of space. Twenty-seven companies are expecting to expand by over 20 per cent — creating up to 49 million square feet of demand from those firms alone, the findings showed.

“Occupiers are cutting loose from legacy portfolios, but they’re not abandoning space, they’re moving to better space and — in many cases — into more locations as they regionalise their portfolios,” said Dr Lee Elliott, Partner and Head of Global Occupier Research at Knight Frank.

The survey highlights a marked shift in location strategies, with organisations consolidating into prime assets, seeking functional flexibility, and designing networks of hubs rather than monolithic headquarters. The trend is already playing out in major markets where demand is tilting toward buildings that offer adaptability, experience, and ESG credentials, particularly in cities that combine global reach with local talent.

“Global uncertainty and the need for business transformation is speeding up this activity, rather than slowing it down, because corporates know they need to get it right to succeed in the current macro environment,” Elliott mentioned.