India’s office market is likely to maintain its expansionary trajectory over the next two years, with companies increasingly seeking high-quality, well-connected workplaces and factoring artificial intelligence (AI) into their real estate strategies, according to CBRE’s 2026 India Office Occupier Survey.The survey, based on responses from more than 200 CXOs between April and June 2026, found that 77% of occupiers expect their India office portfolios to grow over the next two years, signalling continued confidence in office demand despite global uncertainties.
GCCs, business growth drive office expansion
The expansion outlook is expected to be supported by sustained business growth, expansion of Global Capability Centres (GCCs) and rising demand from technology, banking, financial services and insurance (BFSI), and engineering and manufacturing companies.CBRE said the share of corporate occupiers pursuing an aggressive expansion strategy has nearly doubled from the previous year.Around 30% of firms now plan to significantly increase their office footprint over the next two years.Bengaluru, Hyderabad, Pune and Chennai are expected to continue attracting large-scale office requirements.The survey also showed that companies are looking beyond major office hubs. Among occupiers considering Tier-II and Tier-III cities, 65% cited access to emerging talent pools as a key consideration.Nearly half of respondents preferred established core micro-markets, highlighting the importance of mature infrastructure and talent availability.
AI emerges as key factor in leasing decisions
AI is increasingly influencing how companies plan their office spaces. While 93% of respondents said their organisations were at some stage of AI adoption, 57% said AI had not yet had a measurable impact on their leasing strategy.However, changing AI automation dynamics emerged as the top factor expected to influence leasing decisions over the next 12-24 months, according to the survey.CBRE’s findings also point to a growing role for flexible workspaces. Around 67% of occupiers plan to include flex space in their portfolios within two years, up from 58% currently.This indicates a continued shift towards a “core + flex” workplace model, allowing companies to combine long-term office requirements with greater flexibility and cost management.
Commute, connectivity shape office location choices
Location and connectivity are expected to remain central to corporate real estate decisions. 70% of occupiers said they prioritise commute infrastructure when selecting office locations, while 95% identified traffic congestion and commuting as a threat to operations and employee experience.The survey’s findings indicate that India’s office market is moving towards an “adaptive” workplace model, with office expansion, flexible workspaces, AI-enabled infrastructure and employee accessibility increasingly shaping corporate real estate strategies, according to CBRE.
