Foreign firms lease record 9M sq-ft office space in India
What's the story
Foreign companies have leased a record 9.1 million square feet of office space in India's top nine cities during the first quarter of this year. The surge was mainly due to the establishment of Global Capability Centers (GCCs). Overall, the demand for office space increased by five percent during this period, according to real estate consultant CBRE's latest report. Bengaluru, Delhi-NCR, and Mumbai were at the forefront of this leasing activity.
Sectoral impact
GCCs driving demand for office space
The demand for office space isn't restricted to a single sector, but cuts across e-commerce, technology, and BFSI. "The demand is increasingly being driven by mid-market and nano GCCs alongside established Fortune 500 occupiers," said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE. He also noted that American firms accounted for 73% of total GCC leasing in this period.
Location preference
AI-ready workspaces and evolving GCCs
Ram Chandnani, Managing Director of Leasing Services at CBRE India, said occupiers are increasingly favoring green-certified and amenity-rich locations. He added that as occupiers adopt AI-ready workspace strategies and GCCs evolve into multi-functional innovation hubs, the leasing momentum is expected to remain strong through 2026. This further highlights the changing landscape of office space demand in India.