Domestic Firms Driving Indian Office Market Growth
20 Sep 2024
2 Min Read
CW Team
The Indian office market is undergoing a significant transformation, with domestic companies projected to lease 60-65 million square feet of office space between 2024 and 2025, as reported by CBRE. This shift marks a departure from the historical reliance on global corporations, particularly those from the United States.
Over the past two years, domestic firms have seen a remarkable 60% increase in office space absorption compared to the pre-pandemic period (2018-2019). They now account for nearly 47% of overall office leasing activity, with Delhi-NCR leading, followed by Bengaluru and Mumbai.
Cities like Bengaluru and Hyderabad have experienced heightened occupancy rates, driven by the e-commerce and life sciences sectors, respectively. Notably, Mumbai has captured a 43% share of domestic BFSI leasing, bolstered by contributions from Delhi-NCR and Chennai.
Prominent domestic firms, such as L&T Technology Services (545,000 sq ft in Bengaluru) and LTI Mindtree (1.2 million sq ft in Bengaluru and Chennai), are expanding their footprints to meet rising demand for tech-driven solutions. Anshuman Magazine, Chairman & CEO of CBRE, highlights that the robust growth of India's start-up ecosystem and talent pool are major demand drivers.
The office market's expansion is supported by government initiatives like the Make in India program and the Production Linked Incentive (PLI) Scheme. With a talent pool of 2.5 million STEM graduates and over 100 unicorns, the landscape is ripe for growth.
The top nine Indian cities are expected to add 185 million sq. ft. of premium office space by 2026, driven by sectors such as flexible space operators, BFSI, and technology, which together account for two-thirds of domestic leasing activity.
Overall, the demand for office space is set to remain robust, influenced by technological advancements, particularly in AI, which are anticipated to further enhance growth prospects.
The Indian office market is undergoing a significant transformation, with domestic companies projected to lease 60-65 million square feet of office space between 2024 and 2025, as reported by CBRE. This shift marks a departure from the historical reliance on global corporations, particularly those from the United States.
Over the past two years, domestic firms have seen a remarkable 60% increase in office space absorption compared to the pre-pandemic period (2018-2019). They now account for nearly 47% of overall office leasing activity, with Delhi-NCR leading, followed by Bengaluru and Mumbai.
Cities like Bengaluru and Hyderabad have experienced heightened occupancy rates, driven by the e-commerce and life sciences sectors, respectively. Notably, Mumbai has captured a 43% share of domestic BFSI leasing, bolstered by contributions from Delhi-NCR and Chennai.
Prominent domestic firms, such as L&T Technology Services (545,000 sq ft in Bengaluru) and LTI Mindtree (1.2 million sq ft in Bengaluru and Chennai), are expanding their footprints to meet rising demand for tech-driven solutions. Anshuman Magazine, Chairman & CEO of CBRE, highlights that the robust growth of India's start-up ecosystem and talent pool are major demand drivers.
The office market's expansion is supported by government initiatives like the Make in India program and the Production Linked Incentive (PLI) Scheme. With a talent pool of 2.5 million STEM graduates and over 100 unicorns, the landscape is ripe for growth.
The top nine Indian cities are expected to add 185 million sq. ft. of premium office space by 2026, driven by sectors such as flexible space operators, BFSI, and technology, which together account for two-thirds of domestic leasing activity.
Overall, the demand for office space is set to remain robust, influenced by technological advancements, particularly in AI, which are anticipated to further enhance growth prospects.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
