Mumbai, August 4, 2026: Office leasing activity across India’s major markets reached 86.4 million sq ft in 2025, up 20% year-on-year and 43% above the pre-pandemic peak of 2019, according to Knight Frank’s (Y)OUR SPACE Horizon Report – H1 2026. The report highlights India’s growing role as a strategic hub for corporate real estate (CRE) amid global shifts toward cost efficiency and technology adoption.
The findings are based on a global survey of senior CRE leaders, with 70.8% indicating that organisations can achieve immediate cost savings while investing in long-term transformation. Over 53% of respondents expect CRE teams to play a more strategic role in talent, risk management and business transformation, reflecting a move away from the traditional ‘optimise now, transform later’ approach.
AI integration and portfolio optimisation
Technology is central to evolving workplace strategies, with 50.8% of organisations surveyed planning to deploy artificial intelligence within core workflows to drive productivity. The report notes that this is being achieved through targeted integration rather than large-scale workplace redesign.
Globally, companies are shifting from expansion-led strategies to optimising existing portfolios and investing in high-performing, sustainably accredited workplaces. The focus is on spaces that support collaboration, learning and innovation, while sentiment toward physical footprint expansion remains subdued.
GCCs drive India’s office demand
India’s office market has benefited from these trends, particularly with the expansion of Global Capability Centres (GCCs). In 2025, GCCs leased approximately 32.6 million sq ft, accounting for 38% of total office leasing activity. These centres are increasingly taking on complex roles in technology, analytics, research and product development, beyond traditional support functions.
Flexible workspace operators in India recorded their highest-ever annual absorption in 2025, leasing 18.6 million sq ft—an 18% year-on-year increase. Grade A office assets dominated leasing activity, comprising 91% of transactions in 2025, as occupiers prioritised high-quality buildings aligned with productivity and sustainability goals.
India’s strategic relevance in CRE
Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said India’s strong leasing performance underscores its increasing strategic importance in global corporate real estate strategies. He noted that as organisations invest in capability-led operations and higher-quality workplaces, India continues to benefit from its deep talent pool and evolving office ecosystem.
As companies balance operational efficiency with long-term transformation, the report suggests India’s office market will remain a key hub for enterprise expansion and capability-led real estate strategies.
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