As Indian occupiers prioritize high-quality locations and integrate AI into workplace strategies, landlords are urged to upgrade infrastructure and expand into tier-two cities to meet the evolving demand by 2028.
Nearly 40% of office occupiers in India are worried about finding good-quality, well-placed space through 2028, according to CBRE’s 2026 India Office Occupier Survey. The concern comes as employers continue to prioritise established business districts, even as demand for premium buildings remains strong.
CBRE said 55% of organisations considering a move are actively seeking higher-quality offices, with employee experience and future growth among the main drivers. The survey, conducted between April and June and covering more than 200 senior executives across major Indian markets, also found that 77% of occupiers expect their India office portfolios to expand over the next two years. At the same time, 93% reported some stage of AI adoption, suggesting that technology planning is becoming part of broader workplace strategy.
The preference for quality is already visible in the market. CBRE said 41% of leasing in the first half of 2025 through the first half of 2026 took place in investment-grade assets, while these buildings accounted for 46% of transactions in core micro-markets and 57% of new completions over the period. In the wider office market, India posted record gross leasing of about 24.6 million square feet in the second quarter of 2026, alongside 21 million square feet of new supply, according to CBRE’s latest market figures. Flexible space operators and global capability centres were the main demand drivers.
Location remains just as important as building quality. About 47% of respondents prefer core or established micro-markets for new offices, while 25% favour a mix of central and non-core areas. CBRE said 70% of occupiers prioritise commute infrastructure when choosing sites, reinforcing the importance of connectivity, mature transport links and access to talent. The report also recommends that companies plan relocations and expansions earlier, as top-tier space in core markets remains tight.
For landlords and investors, the message is clear: upgrade older stock, improve access and focus on buildings that match changing occupier expectations. CBRE also sees scope for quality office development in selected tier-two cities, where new demand is beginning to build. Its broader outlook for 2026 projects that India’s office stock will pass 1 billion square feet, underpinned by investment-grade supply, infrastructure growth and the continuing expansion of global capability centres.
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