India Inc to drive office demand as firms eye expansion

New Delhi: 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.

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.