India Office Demand Set To Remain Strong, CBRE Survey
ECONOMY & POLICY

India Office Demand Set To Remain Strong, CBRE Survey

CBRE's 2026 India Office Occupier Survey indicates the office market will grow in the next two years, with 77 per cent of occupiers expecting their India portfolios to expand. The survey collected responses from 200 CXOs from April to June 2026 and identified sustained business growth, global capability centre expansion and rising demand from technology, BFSI and engineering and manufacturing. The share pursuing aggressive expansion has nearly doubled year on year, with 30 per cent targeting a larger footprint.

AI is affecting real estate strategy, with 93 per cent reporting AI adoption and 57 per cent reporting no measurable impact on leasing. CBRE ranked evolving AI automation dynamics as the top factor expected to influence leasing decisions over 12 to 24 months and noted occupiers are factoring digital infrastructure into site selection. The firm also expects flexible workspaces to become a growing component of corporate portfolios.

Flexible models show momentum, with 67 per cent planning to include flex space within two years, up from 58 per cent, reflecting a shift towards a core plus flex approach balancing long term commitments with agility. Location and connectivity remain central as Bengaluru, Hyderabad, Pune and Chennai continue to attract requirements; half of respondents preferred established core micro markets. Among occupiers considering Tier II and Tier III cities, 65 per cent cited access to emerging talent pools.

Commute infrastructure could increasingly determine location decisions, with 70 per cent of occupiers prioritising commute connectivity and 95 per cent identifying traffic congestion and commuting challenges as threats to operations and employee experience. CBRE concluded that the market is moving towards an adaptive workplace model in which expansion, flexible formats, AI enabled infrastructure and improved accessibility shape corporate real estate decisions. The survey findings point to continued occupier confidence in India office demand despite wider global uncertainties.

CBRE's 2026 India Office Occupier Survey indicates the office market will grow in the next two years, with 77 per cent of occupiers expecting their India portfolios to expand. The survey collected responses from 200 CXOs from April to June 2026 and identified sustained business growth, global capability centre expansion and rising demand from technology, BFSI and engineering and manufacturing. The share pursuing aggressive expansion has nearly doubled year on year, with 30 per cent targeting a larger footprint. AI is affecting real estate strategy, with 93 per cent reporting AI adoption and 57 per cent reporting no measurable impact on leasing. CBRE ranked evolving AI automation dynamics as the top factor expected to influence leasing decisions over 12 to 24 months and noted occupiers are factoring digital infrastructure into site selection. The firm also expects flexible workspaces to become a growing component of corporate portfolios. Flexible models show momentum, with 67 per cent planning to include flex space within two years, up from 58 per cent, reflecting a shift towards a core plus flex approach balancing long term commitments with agility. Location and connectivity remain central as Bengaluru, Hyderabad, Pune and Chennai continue to attract requirements; half of respondents preferred established core micro markets. Among occupiers considering Tier II and Tier III cities, 65 per cent cited access to emerging talent pools. Commute infrastructure could increasingly determine location decisions, with 70 per cent of occupiers prioritising commute connectivity and 95 per cent identifying traffic congestion and commuting challenges as threats to operations and employee experience. CBRE concluded that the market is moving towards an adaptive workplace model in which expansion, flexible formats, AI enabled infrastructure and improved accessibility shape corporate real estate decisions. The survey findings point to continued occupier confidence in India office demand despite wider global uncertainties.

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