look news india
A historic boom period has begun in the Indian commercial real estate and office space market. Even amid global economic uncertainties, India has emerged as the most preferred destination for the world’s leading multinational companies (MNCs) and Global Capability Centers (GCCs). The latest survey and market data from leading real estate consulting firm CBRE South Asia has revealed that three out of every four companies operating in India, i.e. about 75 percent of corporate occupiers, are planning to significantly expand their office portfolio and workspace in the country within the next two years. With this, all the old all-time high records of office space leasing have been demolished in the current financial year, paving the way for creation of new employment and investment opportunities on a large scale in the country.
Expansion plan of 75% companies: Preparation to increase the scope by more than 30%
According to the Occupier Sentiment Survey released by CBRE, confidence among companies to expand their business in India has reached a new high. Nearly 30 percent of the corporate companies surveyed have clarified that they are planning a major increase in their existing office space by more than 30 percent. Last year, the number of companies having such aggressive expansion plans was only 18 percent, which has now almost doubled. Additionally, around 63 per cent of large-sized corporate occupiers are looking to consolidate their existing operations and open branches in new cities in the next 24 months. India’s total Grade-A office space stock has already crossed the mammoth mark of 1 billion square feet, reflecting the country’s strong corporate infrastructure.
All-time record for office leasing: 4.55 crore sq ft of leasing in the first half
This tremendous surge in demand for office space has left behind all the previous leasing records till now. According to the data, total gross office leasing in the top 9 major cities of the country during the first half (January to June) of 2026 reached a record level of 4.55 crore square feet (45.5 Million Sq Ft). This is the largest leasing volume ever recorded in the first half of any year, registering a growth of over 10 per cent over the same period last year. In the second quarter (April to June) alone, 24.6 million square feet of office space was taken on lease, which proves that there is a competition among foreign and domestic companies to acquire prime workspace.
Global Capability Centers (GCCs) become the biggest engine of growth
Global Capability Centers (GCCs) have emerged as the biggest force behind this unprecedented demand for office space in India. GCC’s share in total office leasing has reached a record 42 to 43 percent. Fortune 500 companies from the US, Europe and Asia-Pacific region are setting up centers in India for their complex technology work, Artificial Intelligence (AI), Machine Learning (ML), Data Analytics, Cloud Computing, Cyber Security and Enterprise Leadership. US companies alone account for more than 70 percent of total GCC leasing. The highly skilled and technical talent available in India, favorable cost differential and modern infrastructure are the biggest reasons for attracting these foreign firms.
Which cities were at the forefront: Bengaluru, Delhi-NCR and Mumbai reigned supreme.
Major metro cities of the country remain the main centers of office space absorption:
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Bengaluru: Bengaluru, known as the Silicon Valley of the country, remains the largest office market in the country with more than 29% market share. The first choice for GCC and tech firms is the Outer Ring Road and Whitefield areas of Bengaluru.
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Delhi-NCR: National Capital Region stood second with 22% share. Multinational companies have locked large office spaces at Cyber City Gurugram, Golf Course Extension Road and Noida Expressway.
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Mumbai and Hyderabad: BKC and Andheri belt in Mumbai saw a jump of up to 33% in leasing driven by demand from BFSI and consulting companies. At the same time, Hyderabad and Pune have attracted IT and engineering companies by registering a strong annual growth of 29% respectively.
Demand for green certified and AI-ready workspaces on the rise
A major change is also being seen in the priorities of modern workplaces. Foreign and domestic occupiers are now giving first priority to environment-friendly and ESG Compliant certified ‘green buildings’ instead of traditional offices. Companies demand smart workspaces that are completely AI-ready, with state-of-the-art wellness features, energy efficient systems and flexible seating arrangements to suit hybrid work models. Along with this, the share of co-working and flexible space operators is also increasing rapidly, as companies are using flex space to improve their cost and risk management.
Far reaching impact on real estate sector and economy
Due to record demand for office space, the vacancy rate of commercial properties in major cities has fallen to a low of 14.6%. Office rental values are seeing strong increases of 3% to 13% due to limited new supply relative to demand. This phase has brought an opportunity for bumper returns for Real Estate Investment Trusts (REITs) and institutional investors. Experts believe that this boom will not be limited to real estate only, but will create millions of high-paying jobs, which will also give a direct boost to the housing, retail and hospitality sectors.