Beyond the Workplace: Why Office Real Estate Is Becoming India’s Growth Infrastructure
By Ashwani Kumar, Pyramid Infratech
An office building was once judged largely by its location, occupancy and rental value. Today, that is no longer enough. The more interesting question is what happens around the office once companies begin occupying it, hiring people and expanding their operations.
India’s office market is increasingly becoming part of the country’s growth infrastructure. The numbers make that shift difficult to ignore. In the first half of 2026, office absorption reached about 45.5 million sq ft, the strongest first-half performance recorded, according to CBRE. Global Capability Centres accounted for 43% of that leasing, with nearly 19.6 million sq ft taken up in the period.
The nature of this demand is changing as well. GCCs are no longer simply large teams carrying out support functions. Their Indian operations increasingly involve technology, engineering, analytics, research and other specialised work. That changes what companies expect from the buildings they occupy. Grade-A space, reliable digital infrastructure, energy efficiency and green credentials are becoming increasingly important parts of the workplace decision.
CBRE data shows that 73% of office leasing in Q2 2026 was concentrated in green-certified buildings. That is a fairly telling shift. The workplace is becoming part of a company’s operating environment, rather than just the physical address where employees sit.
But the impact of office growth extends well beyond the office market itself. Every substantial employment centre creates another set of requirements around it. People need homes within reasonable commuting distance. Roads and public transport have to keep pace. Retail, food, hospitality, healthcare and other everyday services begin to find a market around the workforce.
Gurugram offers a useful example. Its transformation began with the development of a major commercial and corporate centre outside Delhi, with companies moving into large office campuses and business districts. Residential development followed the jobs, and connectivity became central to the city’s growth. What was initially an office destination gradually became one of the NCR’s most important residential markets as well.
That pattern matters for the next generation of office markets. Established centres will continue to attract large occupiers, but the growth of employment corridors is also creating opportunities in emerging locations. Once a sufficient concentration of businesses develops, the surrounding real estate market starts responding to it.
There is another reason the office sector deserves to be viewed through a wider lens. Institutional participation is deepening. In H1 2026, operational office assets held by REITs reached about 167 million sq ft, up 74% from a year earlier, reflecting the increasing role of institutional capital in the sector.
For developers, this places greater emphasis on building office environments that can remain relevant as occupier requirements evolve. The building has to work for the company, but the location has to work for the people who use it every day.
The next phase of India’s office story, therefore, may be less about adding isolated commercial buildings and more about creating employment centres around which entire urban ecosystems can develop. The strongest office markets are likely to be the ones where a new workplace does not simply occupy a city, but helps shape where the city grows next.
Disclaimer: Views expressed in this article are those of the author, and not necessarily of Realtynmore.com.
