Foreign Companies Drive Office Space Demand : lease 62% of office space in India's top 9 cities: CBRE

Foreign corporations leased 111.6 lakh sq ft of office space in India during January-March 2025, contributing 62% of total demand across nine cities, according to CBRE. Total office leasing rose 5% to 180 lakh sq ft year-on-year. Established hubs like Bengaluru and Mumbai led activity, while cities like Chennai and Pune gained traction. CBRE highlighted growing demand for sustainable workspaces and the role of Global Capability Centres in driving growth.

Foreign corporations demonstrated strong interest in India's office real estate market, leasing 111.6 lakh sq ft of office space during the January-March period this year across nine major cities. This accounted for an impressive 62% of the total office space demand, as per data released by CBRE, a leading real estate consultancy firm. 

CBRE's analysis revealed that the total gross leasing of office space reached 180 lakh sq ft in the first quarter of the year, marking a 5% increase compared to the 171 lakh sq ft recorded during the same period last year. 

Global companies played a significant role in this growth, contributing 62% to the total leasing activity. Of the total gross leasing, foreign firms rented 111.6 lakh sq ft, while domestic companies leased 68.4 lakh sq ft. 

The nine cities driving this demand include Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, and Kochi, with established hubs like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai leading the charge. 

Anshuman Magazine, Chairman & CEO for India, South-East Asia, Middle East, and Africa at CBRE, highlighted the positive outlook for India's office sector. "India's office sector is on a solid trajectory for sustained leasing growth, driven by strategic expansions from both domestic and global occupiers," he said. 

He further noted that while traditional hubs continue to dominate, emerging cities like Chennai and Pune are gaining momentum due to their robust talent pools and well-planned supply pipelines. 

"As businesses seek quality workspaces, the demand for sustainable offices is rising, with occupiers prioritizing employee experience and long-term growth," Magazine added. He also emphasized the growing importance of Global Capability Centres, which are shaping the future of the office space market. 

With India's office sector showing resilience and adaptability, the sustained interest from global and domestic players underscores the country's potential as a hub for business expansion and innovation.