Domestic Firms Driving Indian Office Market Growth
Real Estate

Domestic Firms Driving Indian Office Market Growth

The Indian office market is undergoing a significant transformation, with domestic companies projected to lease 60-65 million square feet of office space between 2024 and 2025, as reported by CBRE. This shift marks a departure from the historical reliance on global corporations, particularly those from the United States.

Over the past two years, domestic firms have seen a remarkable 60% increase in office space absorption compared to the pre-pandemic period (2018-2019). They now account for nearly 47% of overall office leasing activity, with Delhi-NCR leading, followed by Bengaluru and Mumbai.

Cities like Bengaluru and Hyderabad have experienced heightened occupancy rates, driven by the e-commerce and life sciences sectors, respectively. Notably, Mumbai has captured a 43% share of domestic BFSI leasing, bolstered by contributions from Delhi-NCR and Chennai.

Prominent domestic firms, such as L&T Technology Services (545,000 sq ft in Bengaluru) and LTI Mindtree (1.2 million sq ft in Bengaluru and Chennai), are expanding their footprints to meet rising demand for tech-driven solutions. Anshuman Magazine, Chairman & CEO of CBRE, highlights that the robust growth of India's start-up ecosystem and talent pool are major demand drivers.

The office market's expansion is supported by government initiatives like the Make in India program and the Production Linked Incentive (PLI) Scheme. With a talent pool of 2.5 million STEM graduates and over 100 unicorns, the landscape is ripe for growth.

The top nine Indian cities are expected to add 185 million sq. ft. of premium office space by 2026, driven by sectors such as flexible space operators, BFSI, and technology, which together account for two-thirds of domestic leasing activity.

Overall, the demand for office space is set to remain robust, influenced by technological advancements, particularly in AI, which are anticipated to further enhance growth prospects.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The Indian office market is undergoing a significant transformation, with domestic companies projected to lease 60-65 million square feet of office space between 2024 and 2025, as reported by CBRE. This shift marks a departure from the historical reliance on global corporations, particularly those from the United States. Over the past two years, domestic firms have seen a remarkable 60% increase in office space absorption compared to the pre-pandemic period (2018-2019). They now account for nearly 47% of overall office leasing activity, with Delhi-NCR leading, followed by Bengaluru and Mumbai. Cities like Bengaluru and Hyderabad have experienced heightened occupancy rates, driven by the e-commerce and life sciences sectors, respectively. Notably, Mumbai has captured a 43% share of domestic BFSI leasing, bolstered by contributions from Delhi-NCR and Chennai. Prominent domestic firms, such as L&T Technology Services (545,000 sq ft in Bengaluru) and LTI Mindtree (1.2 million sq ft in Bengaluru and Chennai), are expanding their footprints to meet rising demand for tech-driven solutions. Anshuman Magazine, Chairman & CEO of CBRE, highlights that the robust growth of India's start-up ecosystem and talent pool are major demand drivers. The office market's expansion is supported by government initiatives like the Make in India program and the Production Linked Incentive (PLI) Scheme. With a talent pool of 2.5 million STEM graduates and over 100 unicorns, the landscape is ripe for growth. The top nine Indian cities are expected to add 185 million sq. ft. of premium office space by 2026, driven by sectors such as flexible space operators, BFSI, and technology, which together account for two-thirds of domestic leasing activity. Overall, the demand for office space is set to remain robust, influenced by technological advancements, particularly in AI, which are anticipated to further enhance growth prospects.

Next Story
Infrastructure Transport

Banihal Bypass Started, Milestone Achieved By NHAI On NH44

The National Highways Authority of India (NHAI) has achieved another milestone on the Jammu-Srinagar four-lane highway after nearly four years of construction. The NHAI has completed the Banihal Bypass, and one side of the bypass was opened for traffic following a post by Union Minister for Road Transport and highways Nitin Gadkari on his official X handle. Traffic has been allowed from Jammu to Srinagar on one tube of the much awaited Banihal bypass.Project head of Banihal bypass from NHAI Kumar Jainendra told Greater Kashmir that the full public cooperation and support from locals was u..

Next Story
Infrastructure Transport

Hyderabad: Rs 70 Bn Sanctioned For Road Infra Works

As part of the Hyderabad City Innovative and Transformative Infrastructure (H-CITI) program the state government sanctioned Rs 70 billion for 38 works, including the construction of flyovers, underpasses, and road-over-bridges (ROB) to ease the traffic in various parts of Hyderabad and its nearby municipalities. As part of the Strategic Road Development Programme (SRDP) initiated by the previous BRS government, several flyovers and road infrastructure projects were taken up mostly under the limits of the Greater Hyderabad Municipal Corporation (GHMC). Out of the 42 works under SRDP, 36 projec..

Next Story
Infrastructure Transport

India's Second Cable-Stayed Bridge to Be Built In Howrah

Eastern Railways is set to construct India’s second cable-stayed steel deck bridge in Howrah, aimed at easing traffic congestion on the Howrah Bridge. The new bridge will span the existing GT Road route, linking Howrah Station with the Howrah Bridge. The new structure is a response to the rising volume of vehicular traffic, which has been placing significant strain on the 75-year-old Howrah Bridge, leading to regular traffic jams and delays.The new cable-stayed bridge will feature a four-lane design and will measure 134 m in length, an expansion from the existing 60 meters of the Chandmari B..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000