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Global Capability Centres (GCCs) are driving India’s office demand, accounting for 35-40% of total annual absorption. According to CBRE’s 2025 India Office Occupier Survey, GCCs are transforming into high-value innovation hubs focused on R&D, AI and core engineering. About 65% of surveyed GCCs plan to expand their portfolios in the next two years, with BFSI, life sciences, and engineering & manufacturing emerging as key sectors.

As much as 85% of the surveyed domestic firms are looking to expand their office portfolio over the next two years, according to CBRE South Asia annual survey report ‘2025 India Office Occupier Survey’. The figure was 73% in 2024. Over the next two years, the demand for workspaces is also expected to be supported by an office-first policy and tighter hybrid arrangements.

The survey also revealed that around 94% of the companies prefer their employees working from office at least three days a week. Furthermore, about 52% of the surveyed firms have a policy of working fully from the office, compared to 36% in 2024.

The report showed that global capability centres (GCCs) continue to drive strong office space demand in India, accounting for around 35-40% share in total annual absorption in recent years. This momentum is underpinned by a strategic shift as GCCs transform from cost-efficient back-office units into high-value innovation hubs focused on R&D, AI, and core engineering.

Leasing activity has reflected this growth trajectory, with the average GCC deal sizes also increasing to 108,000 sq. ft in H1 2025 from 91,000 sq. ft in 2024.

CBRE 2025 India Office Occupier Survey was conducted between March and July 2025, collecting responses from over 100 CXOs nationwide.

The survey showed that there is a growing preference amongst occupiers to expand in smaller cities over the next few years. The release also said that companies are increasingly exploring tier-II / III cities as the next growth opportunity, aided by the presence of a skilled talent pool, competitive costs, and developing infrastructure and connectivity.

Anshuman Magazine, Chairman & CEO — India, South-East Asia, Middle East & Africa, CBRE, said, “India’s office market is entering a defining decade, marked by both resilience and reinvention. As occupiers demand future-ready, high-performance workspaces, the industry must respond with strategic upgrades, sustainability-driven retrofits, and digitally integrated ecosystems. The next wave of growth will not only reinforce India’s position as a global office hub but also unlock long-term value across the real estate lifecycle.”

Ram Chandnani, Managing Director-Leasing, CBRE India, said, “Global capability centres and Indian occupiers are shaping the next chapter of the country’s office sector. GCCs alone account for about 35-40% of absorption, driven by their rapid evolution into high-value innovation hubs across AI, engineering, and life sciences. At the same time, flexible workspaces are no longer a secondary option; they are becoming integral to occupier strategies, with adoption levels set to double in the coming years. Together, these forces will redefine workplace models, creating a more dynamic, innovative, and responsible office ecosystem for the future.”