India’s Office Market Set to Hit 1 Billion Square Foot Milestone as Tech Parks Dominate Supply

New Delhi, March 18, 2026: India’s commercial real estate sector is approaching a historic landmark, with the country’s total office stock projected to surpass the 1 billion square foot milestone during 2026. According to the CBRE India Office Market Outlook 2026 report released on March 18, the market is undergoing a structural evolution characterized by a decisive shift toward integrated technology parks. Between 65% and 68% of the projected office supply for 2026-27 is expected to be delivered within these well-amenitized, investment-grade developments, up from approximately 54% in previous years.

This surge follows a record-breaking 2025, which saw annual gross absorption hit an all-time high of 83.1 million square feet, marking the third consecutive year of growth. New supply also peaked at 58.9 million square feet, with Bengaluru, Mumbai, Delhi-NCR, and Hyderabad accounting for three-quarters of all leasing activity. Sustainability has become a non-negotiable standard for the industry, as green-certified assets represented 87% of all completions throughout the past year.

Anshuman Magazine, Chairman and CEO, India, South-East Asia, Middle East and Africa at CBRE noted that the rise in supply within integrated tech parks reflects a deliberate convergence between developer strategies and the evolving needs of institutional occupiers. “As global capability centres (GCCs) deepen their mandates into Research & Development and product ownership, the quality of the real estate ecosystem they operate in becomes a direct input into their ability to attract and retain specialised talent. India is building that ecosystem at scale, and the leasing data confirms that occupiers are responding,” he said.

Global Capability Centres (GCCs) remain the primary engine of this demand, accounting for 39% of total office absorption in 2025. These centers are increasingly moving beyond back-office support to focus on high-complexity R&D roles and global product ownership, with R&D-focused GCCs growing 1.3 times faster than the broader market since 2020. The report indicates that this momentum is unlikely to slow, as roughly 65% of GCC occupiers expect to expand their portfolios by 10% or more by 2027.

Ram Chandnani, Managing Director, Leasing at CBRE India, emphasized that the market is seeing a shift toward Grade-A+ offerings that prioritize more than just location. “Occupiers today are prioritising technology-enabled, wellness-centric environments that enhance productivity and attract top talent. As Global Capability Centers (GCCs) deepen their presence in India, the bar is being raised further, with a growing need for infrastructure that can support highly specialised functions including AI. It is becoming evident that digital infrastructure is now as critical as physical infrastructure and employee experience is a key driver of real estate decisions. As we move into 2026, buildings that successfully integrate smart technology, flexibility, and human-centric design will define the next wave of demand,” he stated.

Looking ahead, the integration of advanced technology will continue to dictate the types of spaces that succeed in major hubs. Magazine added, “As enterprises scale AI-driven functions like data engineering, automation, and model development, demand is expected to shift towards high-quality, tech-enabled office environments capable of supporting these advanced workflows, further sustaining the need for premium spaces in major hubs.”

Latest News