40% of India's office occupiers worry about finding quality space through 2028

NEW DELHI: A recent CBRE survey reveals that 40% of office occupiers in India express concerns about procuring high-quality, strategically located workspace through 2028. Despite a preference for established business districts, companies are increasingly prioritizing superior office spaces to enhance employee experience and future growth. Approximately 55% of organizations planning to relocate are actively seeking out such buildings.

The trend is evident in leasing activity, with investment-grade buildings constituting 41% of all office leases during the first half of 2025-26. In core micro-markets, 46% of leasing transactions took place in investment-grade assets, while these buildings accounted for 57% of new office completions during the period. However, established business districts still hold their appeal, as 47% of respondents favor core or established micro-markets for new offices, and 25% opt for a mix of core and non-core locations.

According to CBRE, mature infrastructure, a deep talent pool, and robust multimodal connectivity continue to influence occupiers' location decisions, surpassing pure cost advantages. The survey underscores the importance of planning office moves early, as quality space remains scarce in key markets. Furthermore, the concept of a preferred workplace extends beyond physical quality, encompassing aspects such as flexible workspaces, easy commuting, and AI-enabled infrastructure.

For landlords and developers, CBRE advises focusing on high-quality assets and better connectivity, while investors are encouraged to upgrade ageing buildings to meet the increasing demand for superior workplaces. The report also emphasizes the potential of developing quality office space in select Tier-II cities to capitalize on emerging demand from occupiers.