India Inc To Drive Office Demand As 85 Pc Firms Eye Expansion Over 2 Years, Gccs Lead

(MENAFN- IANS) New Delhi, Sep 9 (IANS) Eighty-five per cent of domestic firms are looking to expand their office portfolio over the next two years -- from 73 per cent in 2024, according to a report on Tuesday.

Over the next two years, the demand for workspaces is also expected to be supported by an office-first policy and tighter hybrid arrangements, according to the report by CBRE South Asia Pvt Ltd.

The intent is underpinned by strong growth witnessed among key sectors, and the accelerated pace of digitalisation across industries. As compared to the pre-COVID-19 period of 2018-19, domestic firms recorded a remarkable resurgence in office leasing during 2023–2024, registering an increase of 86 per cent.

The report revealed that around 94 per cent of the companies prefer their employees working from office at least three days a week. Furthermore, about 52 per cent of the surveyed firms have a policy of working fully from the office, compared to 36 per cent in 2024.

Apart from flexible spaces, global capability centres (GCCs) continue to drive strong office space demand in India, accounting for a 35-40 per cent share in total annual absorption in recent years.

This momentum is underpinned by a strategic shift as GCCs transform from cost-efficient back-office units into high-value innovation hubs focused on R&D, AI, and core engineering.

Around 65 per cent of the surveyed GCCs are expected to expand their portfolios over the next two years, with BFSI, life sciences, and engineering and manufacturing emerging as the leading sectors. Leasing activity has reflected this growth trajectory, with the average GCC deal sizes also increasing to 108,000 square feet in H1 2025 from 91,000 sq ft in 2024.

Flexible workspace operators have firmly established themselves in India's office leasing landscape, consistently capturing a more than 15 per cent share in overall yearly absorption trends.

“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,” said Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE.

The next wave of growth will not only reinforce India's position as a global office hub but also unlock long-term value across the real estate lifecycle, he added.

The survey-report indicated that this momentum is expected to continue, with the number of companies allocating 26–50 per cent of their portfolio to flexible spaces set to rise by more than two-fold over the next two years.

Ram Chandnani, Managing Director–Leasing, CBRE India, said that GCCs and Indian occupiers are shaping the next chapter of the country's office sector.

-IANS

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