India's Leap Towards Sustainable & Innovative Workspace Design
- Industry News
- March 13, 2024

India’s office leasing market recorded 19.4 million sq ft of gross absorption in Q1FY27, down 6% year-on-year, while net absorption fell 21%. Geopolitical tensions delayed corporate commitments, but GCC demand remained strong. Tightening vacancy rates, resilient REIT portfolios, and a proposed tax cut could support the sector amid near-term uncertainty.
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India’s six listed REITs distributed ₹3,136 crore to over 4.85 lakh unitholders in Q1 FY2026-27, nearly doubling the previous year’s payout. With gross AUM above ₹3.17 lakh crore and portfolios covering 214 million sq. ft., REITs are strengthening their role in India’s office and retail real estate market.
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India’s REIT and InvIT market could expand sharply by 2030, with combined AUM potentially reaching ₹20 lakh crore from the current ₹8.2 lakh crore. Low penetration across infrastructure and real estate assets is creating significant growth headroom. Rising investor interest and lower volatility could further strengthen listed real assets.
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Bain Capital has sold a 5.64% stake in Embassy Office Parks REIT for ₹2,325 crore. The sale comes as Embassy REIT plans to acquire 10–12 million sq. ft. of office space and develop an additional 6.2 million sq. ft., supported by strong demand in the flexible workspace.
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India’s GCC industry generated an estimated $98.4 billion in FY26. As GCCs take on more AI, R&D and complex work, demand for scalable offices is rising. They accounted for 44% of Q1 2026 office leasing, while 67% plan to expand their flexible workspace footprint.
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Canadian banking major CIBC has leased 120,708 sq ft at Hyderabad’s Meenakshi Eco Park for its GCC, committing ₹180 crore over five years. The deal highlights strong BFSI GCC expansion in Hyderabad and growing preference for managed office solutions. The city is also witnessing rapid growth in large-format office transactions.
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