India’s commercial real estate sector is undergoing a significant transformation, driven by the surging demand from domestic companies. Once dominated by global firms, the office leasing landscape is now seeing a decisive shift toward homegrown enterprises, reflecting deeper economic resilience and strategic realignment.

According to JLL, domestic occupiers now account for 46% of all gross leasing activity—up sharply from 35% before the pandemic. In 2024 alone, these companies leased a record-breaking 31.9 million square feet, with the momentum continuing into 2025 as they secured 8.8 million square feet in just the first quarter.

“The office market is no longer just about global corporations expanding into India,” said a JLL spokesperson. “It’s about Indian companies consolidating, scaling, and redefining space needs for the long haul.”

Among the sectors leading this charge is BFSI (Banking, Financial Services, and Insurance), which has seen the most dramatic increase in average transaction size. BFSI firms have more than doubled their office space requirements, growing from 10,500-11,500 sq. ft. before the pandemic to 24,000-25,000 sq. ft. post-2022—a staggering rise of over 125%. The manufacturing sector follows suit, with deal sizes now averaging 15,000-16,000 sq. ft., up from 7,000-8,000 sq. ft., thanks to India’s increasing focus on domestic production.

Flexible workspace operators, too, are expanding aggressively, with average deal sizes now reaching 57,000-60,000 sq. ft.—a 35-45% jump. These spaces are increasingly being used by enterprise clients looking for agility and scale. The tech industry isn’t far behind either, with IT & ITeS firms boosting their average deal sizes to 31,000-32,000 sq. ft., an 85-95% increase over pre-2019 levels.

“The spike in average deal size is directly linked to enterprise-level consolidation and policy-driven growth, especially in manufacturing and BFSI,” the JLL report noted. Flex space, it added, continues to attract growing demand from large domestic firms looking for cost-effective scalability.

Regionally, Delhi NCR remains the top destination for domestic occupiers, thanks to its diverse industry base and strong flex space presence, where flexible workspaces account for more than 30% of activity. Meanwhile, Mumbai is the fastest-growing market, with its share of domestic leasing surging 62% since 2022, driven mainly by BFSI expansion.

As India’s economy diversifies and matures, sectors like fintech, biotech, aviation, OEMs, and EPC are also expanding their office footprints. Rising financial inclusion, a robust talent pool, and supportive government policies fuel their growth.

With global and local companies expanding, India’s office market is no longer defined by who enters, but by who scales.