Smart infrastructure drives Grade A office demand

14 Apr 2026 CW Team

According to Colliers, Grade A office demand is projected to reach 70–75 million sq ft in 2026, with global capability centres (GCCs) contributing up to 40–50 per cent of absorption. The focus is now on integrated systems rather than just physical space, with newer, green-certified buildings leasing faster and commanding stronger negotiations.

Data from CBRE shows India recorded 82.6 million sq ft of office leasing in 2025, marking the third consecutive year of strong activity. However, demand is increasingly concentrated in premium assets, which are also witnessing rental resilience across key micro-markets.

The rise of GCCs has further accelerated this shift, with offices evolving into integrated operating environments supporting product, analytics and AI functions.

Sandeep Chhillar, Founder and Chairman, Landmark Group, said, “There is a visible recalibration in how occupiers evaluate office space today. It is no longer about headline location or rental arbitrage alone. Smart infrastructure and thoughtful Grade-A design are the new currency in office leasing… it will influence how portfolios get reshaped.”

According to Cushman & Wakefield, net absorption in Q3 2025 grew 35 per cent year-on-year to 16.3 million sq ft, with rental growth led by premium segments in cities such as Mumbai and Hyderabad.

Sanchit Bhutani, Managing Director, Group 108, said, “There is also a subtle but important shift in how developers are approaching design and delivery… there is a growing preference for high-quality and tech-enabled buildings that enhance employee experience, productivity and brand image.”

Goldi Arora, Co-founder & Managing Director, Property Master, added, “Occupiers are showing a willingness to commit longer, but with sharper expectations around performance… creating a different kind of accountability for developers and asset managers.”

As demand clusters around high-quality, tech-enabled developments, cities like Bengaluru, Hyderabad and NCR are witnessing selective growth driven by ecosystem maturity, infrastructure and asset quality.

Demand for Grade A office spaces in India is increasingly being driven by infrastructure depth, digital readiness and long-term building performance, signalling a shift away from location-led decision-making.According to Colliers, Grade A office demand is projected to reach 70–75 million sq ft in 2026, with global capability centres (GCCs) contributing up to 40–50 per cent of absorption. The focus is now on integrated systems rather than just physical space, with newer, green-certified buildings leasing faster and commanding stronger negotiations.Data from CBRE shows India recorded 82.6 million sq ft of office leasing in 2025, marking the third consecutive year of strong activity. However, demand is increasingly concentrated in premium assets, which are also witnessing rental resilience across key micro-markets.The rise of GCCs has further accelerated this shift, with offices evolving into integrated operating environments supporting product, analytics and AI functions.Sandeep Chhillar, Founder and Chairman, Landmark Group, said, “There is a visible recalibration in how occupiers evaluate office space today. It is no longer about headline location or rental arbitrage alone. Smart infrastructure and thoughtful Grade-A design are the new currency in office leasing… it will influence how portfolios get reshaped.”According to Cushman & Wakefield, net absorption in Q3 2025 grew 35 per cent year-on-year to 16.3 million sq ft, with rental growth led by premium segments in cities such as Mumbai and Hyderabad.Sanchit Bhutani, Managing Director, Group 108, said, “There is also a subtle but important shift in how developers are approaching design and delivery… there is a growing preference for high-quality and tech-enabled buildings that enhance employee experience, productivity and brand image.”Goldi Arora, Co-founder & Managing Director, Property Master, added, “Occupiers are showing a willingness to commit longer, but with sharper expectations around performance… creating a different kind of accountability for developers and asset managers.” As demand clusters around high-quality, tech-enabled developments, cities like Bengaluru, Hyderabad and NCR are witnessing selective growth driven by ecosystem maturity, infrastructure and asset quality.

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