India Inc poised to drive office demand as 85% firms eye expansion over the next two years CBRE

CBRE South Asia Pvt. Ltd.’s 2025 India Office Occupier Survey revealed that 85% of domestic firms plan to expand their office portfolio over the next two years, a rise from 73% in 2024. This growth is driven by strong growth in key sectors and the rapid pace of digitalisation across industries. The demand for workspaces is expected to be supported by an office-first policy and tighter hybrid arrangements. Flexible workspace operators have firmly established themselves in India’s office leasing landscape, capturing over 15% of overall yearly absorption trends. Global capability centres (GCCs) continue to drive strong office space demand in India, accounting for 35-40% of total annual.

Absorption in recent years. Around 65% of surveyed GCCs are expected to expand their portfolios over the next two years, with BFSI, life sciences, and engineering & manufacturing emerging as the leading sectors. The report also highlights the growing preference amongst occupiers to expand in smaller cities, aided by a skilled talent pool, competitive costs, and developing infrastructure and connectivity. The commercial real estate landscape in India is entering one of its most defining phases. A recent CBRE report highlights that nearly 85% of Indian firms are preparing for office space expansion within the next two years, a projection that underscores both the resilience of corporate.

Corporate Optimism and Economic Backdrop

India and the rapid shifts in workplace culture. This surge in demand is not just about square footage; it’s about evolving business priorities, technology integration, sustainable design, and the expansion of growth corridors across the country. India’s economy continues to be a bright spot in the global market, with steady GDP growth, stable macroeconomic indicators, and robust foreign direct investment inflows. These fundamentals have given companies the confidence to scale operations, even as global uncertainties persist. In fact, the rising confidence of India Inc. mirrors the infrastructure push being observed nationwide, such as the (Gurugram Metro Project) that is set to.

Transform regional connectivity. With improved mobility, corporates have greater incentives to expand office presence in urban as well as peripheral business hubs. Technology has become a decisive factor in workplace planning. While hybrid models initially reduced space dependency, the reality unfolding today is more complex. Organizations are not shrinking their footprints; rather, they are restructuring layouts to create collaborative, tech-enabled work environments. This is particularly evident in Tier-1 cities like Bengaluru, Gurugram, and Hyderabad, where developers are integrating smart technologies into new office towers. The lessons from infrastructure projects.

Sectoral Drivers of Office Expansion

Such as which emphasize speed, efficiency, and connectivity are also influencing how office spaces are designed to enhance productivity and reduce friction in daily operations. The CBRE survey highlights how sector-specific demand will fuel this expansion. IT and IT-enabled services remain dominant, given their continued reliance on large-scale talent hubs. BFSI players are actively setting up more branches and back-end hubs to cater to India’s financial inclusion drive. Startups and unicorns, supported by platforms like are creating flexible, fast-growing office ecosystems. Manufacturing and e-commerce players are no longer limiting expansion to warehouses and logistics.

They are also seeking corporate offices close to supply chain hubs, integrating operations in a more coordinated fashion At the same time, Global Capability Centers (GCCs) are cementing India’s position as the back office of the world. Their presence in cities such as Hyderabad, Chennai, and Pune demonstrates how India’s skilled workforce and cost competitiveness continue to attract international corporations One of the most striking changes in India’s office market is the rise of Tier-2 and Tier-3 cities. With improved connectivity and infrastructure, smaller cities are emerging as attractive hubs for corporates that want to lower operational costs without compromising on talent.

Availability. The government’s ongoing push through projects like the show how infrastructure expansion is directly contributing to regional economic growth. As these areas urbanize, the demand for modern office spaces naturally grows, signaling a more decentralized future for corporate India.

Sustainability and ESG Priorities

Sustainability has shifted from being a ‘good-to-have’ to a ‘must-have’ for corporate occupiers. Green-certified offices, wellness-oriented designs, and energy-efficient buildings are increasingly preferred. The work of (IGBC) in promoting eco-friendly practices is finding resonance among India Inc., which is aligning with global ESG benchmarks. In fact, the emphasis on renewable energy infrastructure like the first port-based green hydrogen plant at VOC Port reinforces how deeply sustainability is now integrated into India’s growth story. Offices that adopt ESG principles are not only appealing to employees but also to investors, who view sustainability as central to long-term resilience.

Workplace Transformation and Human-Centric Design

As firms expand, there is also a deliberate shift toward designing human-centric workplaces. Instead of focusing on sheer capacity, businesses are creating environments that encourage collaboration, wellness, and innovation. This includes spaces with more natural light, green zones, recreational areas, and tech-enabled meeting rooms. The philosophy is similar to which focus not just on transportation but on enhancing passenger experiences. Likewise, the new office environments are designed to enhance employee experiences, thereby boosting retention and productivity Government reforms and proactive policies are also adding momentum to this trend. Simplified FDI norms in real estate.

GST rationalization, and the implementation of REITs have increased investor participation in the commercial property segment. Developers are responding with mixed-use projects that blend office, retail, and residential spaces to create integrated ecosystems. This mirrors larger national ambitions, where infrastructure and corporate growth are seen as mutually reinforcing. For example highlights how Indian infrastructure players are aligning themselves to capture opportunities in both traditional sectors and new growth areas like Battery Energy Storage Systems (BESS).

Future Outlook: A Decade of Opportunity

Looking ahead, India’s office sector is not merely expected to grow in size but also in sophistication. The next decade could see India transition into one of the top global hubs for corporate offices, powered by a young workforce, rapid urbanization, and a focus on sustainable development. CBRE’s forecast of 85% expansion is, therefore, not just a statistic it is a signal that the country is entering an era where office demand will reflect broader shifts in corporate strategy, employee expectations, and urban planning Developers are already preparing for this shift, designing flexible layouts that can adapt to future needs. Investors, both domestic and global, are eyeing the sector as a long.

Term bet. As India builds high-speed rail, metro networks, green hydrogen plants, and smart cities, the office market will evolve alongside these changes, absorbing both the workforce and the innovations that come with it The CBRE report captures a moment of optimism, but it also reflects deeper structural shifts in how India’s economy and workforce are evolving. From Tier-1 metros to emerging hubs, from IT giants to nimble startups, from traditional workplaces to green-certified campuses the demand for offices is set to surge in new and transformative ways. India’s office market, once reactive to global trends, is now setting benchmarks of its own, anchored in growth, sustainability, and innovation.