Domestic Firms Driving Indian Office Market Growth

20 Sep 2024 CW Team

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.

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.

Infrastructure Urban

08 Apr 2026

UniAcoustic, Vicoustic Form UniVicoustic Alliance

UniAcoustic, part of United Group, has acquired a strategic stake in Portugal-based Vicoustic, forming a new alliance branded as UniVicoustic. The agreement, signed in Mumbai, marks a significant cross-border partnership aligned with evolving India–EU trade dynamics.The collaboration brings together Vicoustic’s global expertise in architectural acoustic products with UniAcoustic’s manufacturing scale and distribution capabilities. The combined platform aims to expand market reach, integrate technology and optimise supply chains across key regions.The development comes amid progress in th..

Infrastructure Urban

08 Apr 2026

Dalmia Bharat, Delhi PWD Revamp Under-Flyover Spaces

Dalmia Bharat has partnered with the Public Works Department (PWD), Government of Delhi, to redevelop select under-flyover spaces and a road stretch into sustainable urban hubs. The agreement covers key locations including Lodhi Flyover, Oberoi Flyover, Mangi Bridge and Hanuman Setu.Under the initiative, the company will undertake design, landscaping, plantation and long-term maintenance of the sites, with a defined upkeep period of three years after completion. The project aims to improve urban aesthetics while promoting environmental sustainability and biodiversity restoration in high-densit..

Infrastructure Urban

08 Apr 2026

Versigent Debuts as Independent NYSE-Listed Company

Versigent has launched as an independent publicly traded company following its separation from Aptiv, with shares commencing trading on the New York Stock Exchange under the ticker “VGNT”. The move marks a significant milestone in the company’s transition into a standalone global player in power distribution systems.The company specialises in the design, manufacturing and delivery of low- and high-voltage electrical architectures, supported by engineering centres across four continents and manufacturing operations in over 25 countries.Versigent reported revenues of $8.8 billion, net inco..