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

Hybrid work and AI are reshaping India’s office market, with global attendance still 30% below pre-pandemic levels. Slower entry-level IT hiring, rising demand for flexibility, and migration toward Tier-2 cities are challenging traditional office models. Companies are now rethinking workplace strategies, talent retention, and long-term commercial real estate demand.
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India’s office market is seeing a strong shift toward premium and tech-enabled workspaces. A CBRE survey shows that 40% of occupiers are concerned about the availability of quality office space through 2028. With GCCs driving leasing, demand is favouring Grade-A assets, while older properties could face rising vacancies and competitive pressure.
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India’s commercial office market is entering a stronger growth cycle, with vacancy levels falling to 12.9% across the top seven cities. Despite a slight decline in leasing activity during Q2 2026, healthy demand from IT, BFSI, flexible workspace operators, and GCCs continues to support rental growth and long-term market stability.
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India’s institutional real estate investments climbed 23% year-on-year to USD 4.3 billion during H1 2026. Office assets captured over half of total investments, supported by GCC expansion, REIT activity, and strong leasing demand, signalling growing confidence in the country’s commercial real estate and flexible workspace ecosystem.
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India’s Global Capability Centre (GCC) sector has added nearly 1.7 million jobs since FY20, reshaping office demand across Bengaluru, NCR, Hyderabad, and Pune. Rising leasing activity, infrastructure growth, and demand for integrated business ecosystems are pushing developers to create flexible, scalable, and amenity-rich workplace environments for multinational occupiers.
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India’s Grade-A office market recorded 13.5 million sq. ft. of net absorption in Q1 2026, led by Bengaluru, Hyderabad, and Chennai. GCCs accounted for nearly 47% of leasing demand, while vacancy levels improved across major cities as occupiers continued prioritising premium, sustainable, and future-ready office developments.
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