India Inc's Ascension - The Rise of Domestic Firms as an Office Demand Driver - Infographic

Over the past few years, India has emerged as a beacon of economic growth and opportunity, resilient in the face of global challenges. Central to this narrative is the remarkable expansion witnessed in the country’s office real estate market.

However, in tandem with global firms continuing their expansion through global capability centres (GCCs) in India, the country has witnessed a significant increase in domestic firms leasing office space in recent years. Since 2022, these homegrown companies have become critical demand drivers, accounting for nearly half of the overall office leasing activity, remarkably transforming the country’s commercial real estate landscape.

Key Sectors Fuelling Domestic Firms’ Office Space Expansion

Flexible space operators, technology companies, and BFSI firms have consistently accounted for approximately two-thirds of India's domestic office leasing activity in recent years.

Domestic firms are poised to sustain their robust office space absorption in the coming years as they strategically expand into new locations while enhancing existing capabilities. CBRE anticipates domestic firms could lease between 60 and 65 million sq. ft. of office space during 2024-2025.

Please click the download button to gain insights into the trends dictating the significant rise of domestic firms in India’s office leasing activity, underlining key implications for both investors and stakeholders.