Value is the New Big: Why Corporates Are Leasing Smarter, Not Larger in 2026

By Mohit Batra

New Delhi, February 14, 2026: India’s office market in 2026 is expanding, but not in the way it once did. Leasing volumes remain robust, yet corporates are approaching real estate decisions with far greater discipline. The priority has shifted from scale to efficiency. Companies are optimising space, decentralising footprints, and embedding flexibility rather than simply increasing square footage.

The data, particularly in the National Capital Region, illustrates this transition clearly.

NCR: Strong Absorption, Tighter Strategy

According to recent market updates from JLL and CBRE, NCR recorded gross office leasing of roughly 8 to 9 million square feet in 2024, placing it among India’s top three office markets alongside Bengaluru and Mumbai. Vacancy in prime Grade A assets has remained broadly in the mid-teens, with tighter availability in established micro-markets such as Gurugram’s Golf Course Road and parts of Noida.

However, average space utilisation per employee has fallen compared to pre-2020 levels. Before the pandemic, occupiers often planned at 100 to 120 square feet per person. Workplace strategy research from CBRE indicates that many corporates now design offices closer to 70 to 90 square feet per employee, depending on hybrid intensity and sector mix. Desk sharing ratios of 1.3 to 1.5 employees per workstation are increasingly common in technology and consulting-led occupiers.

The implication is clear. Headcount growth is not translating proportionately into larger leased footprints.

Hybrid Work Has Reset Capacity Equation

CBRE’s India occupier surveys show that a majority of large corporates continue to operate hybrid work structures, typically requiring attendance two to three days per week. JLL research similarly notes that while physical offices remain central to collaboration and culture, full five-day occupancy is no longer the norm across most sectors.

This has altered leasing mathematics. Instead of building capacity for 100 percent attendance, companies are designing for staggered occupancy. In NCR, this has resulted in renewed interest in high-quality, flexible floor plates that allow modular expansion rather than committing to large single blocks upfront.

Cost Discipline in a Firm Rental Market

Prime NCR micro-markets have seen rental resilience due to constrained Grade A supply. JLL reports that top-tier assets in Gurugram have maintained strong rental benchmarks, even as new supply has entered peripheral zones.

Against this backdrop, corporates are evaluating real estate through a cost-per-seat lens rather than a cost-per-square-foot lens. Fit-out efficiency, density optimisation, and energy management are central to decision-making. CBRE research indicates that green-certified buildings in India account for more than half of new Grade A completions in major cities, reflecting occupier preference for lower operating costs and ESG alignment.

In NCR specifically, developers have responded with higher specifications, but occupiers are counterbalancing rental premiums through space rationalisation.

Decentralisation Within NCR

One of the more notable shifts in NCR is intra-regional decentralisation. JLL data over recent quarters shows growing absorption in Noida and emerging Gurugram sectors, not just traditional CBD corridors. Companies are selecting locations closer to residential concentrations to reduce employee commute times.

This is particularly relevant given NCR’s commuting patterns, where cross-city travel between Delhi, Gurugram, and Noida can exceed 60 to 90 minutes during peak hours. Corporates are increasingly viewing commute reduction as a productivity strategy, not merely an HR benefit.

Instead of a single large headquarters, firms are experimenting with distributed hubs across the region. This approach lowers concentration risk and improves talent catchment reach.

Flexible Space As Strategic Lever

Flexible workspace operators continue to account for a meaningful portion of NCR’s annual leasing activity. Industry estimates from CBRE suggest flex space contributes roughly 15 to 20 per cent of gross absorption in several major Indian office markets, including NCR.

Corporates are using flexible formats not only for short-term needs but as embedded components of long-term strategy. They provide:

• Expansion buffers
• Short-cycle project capacity
• Market entry testing
• Temporary swing space during consolidation

This allows companies to scale headcount without immediately locking into long-term fixed obligations.

From Square Footage to Productivity Metrics

Workplace design in 2026 reflects a deeper shift. Even as per-employee space has reduced, collaborative and experiential areas have expanded. CBRE’s workplace research indicates that employees are more likely to commute when the office delivers collaboration value, wellness infrastructure, and amenity access.

In NCR, this has translated into higher demand for buildings offering integrated retail, food and beverage, and wellness facilities within business parks. The quality of environment now influences leasing decisions as much as rental economics.

More Mature Leasing Cycle

India’s office market remains one of the most active in Asia Pacific by absorption volume. Yet the tone of leasing has changed. Corporates are no longer equating larger offices with business strength. They are prioritising:

• Lower square feet per employee
• Distributed regional footprints
• Hybrid-compatible layouts
• ESG-aligned buildings
• Flexibility embedded in lease structures

In NCR, where connectivity, commute time, and micro-market performance vary sharply across corridors, this strategic approach is particularly visible.

Leasing in 2026 is not about taking more space. It is about extracting more value from every square foot committed.

The author is Regional Director, Realistic Realtors