Domestic Companies Lease 47% of Office Space Since 2022, US Firms' Share Declines

Domestic companies have taken 47% of the total 154 million sq feet of office space leased since 2022 calendar year across nine major cities and the dominance of global firms particularly from the US has come down, according to CBRE. The real estate consultant CBRE noted that the share of domestic companies was one-third of the total office demand before 2022.

CBRE's latest report ‘India Inc’s Ascension - The Rise of Domestic Firms as an Office Demand Driver showed that domestic companies accounted for nearly 47% of overall office leasing activity from 2022 to H1-2024. "The total office leasing by domestic firms during 2022-H1 2024 period stood at 72 million square feet across the 9 cities. The total office leasing during this same period stood at around 154 million square feet. The nine cities include Delhi-NCR, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Pune, Kochi and Ahmedabad," the consultant said.

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said the domestic firms are demonstrating a strong commitment to growth and expansion, which is set to drive substantial office space absorption in the coming years.

"India's rapidly expanding start-up ecosystem and talent abundance are major drivers of this demand. This surge in office space leasing by Indian firms reflects a broader trend towards high-quality, adaptable work environments that cater to the evolving needs of businesses," he said.

India's top nine cities are poised to see an impressive addition of around 185 million sq ft of premium office space by 2026, Magazine said.

Commenting on the report, co-working player BHIVE Workspaces Founder and CEO Shesh Rao Paplikar said the data underscores the confidence of local enterprises in India’s economic outlook, even amidst global uncertainties.

"It also signifies the maturity of India's commercial real estate market, with domestic demand playing a crucial role in driving sustained growth. With more Indian companies expanding their operations, we anticipate this trend to endure, contributing to a persistent demand for office spaces in key cities in the long term," Paplikar said.

Ashish Sharma, AVP-Operations of Delhi-NCR based Brahma Group, said this shift in demand highlights the resilience and adaptability of local firms.

"The surge in demand for office space, driven by sectors such as technology and BFSI, reflects a broader trend of domestic occupiers leading the charge in a recovering economy. As the market evolves, we anticipate a growing demand for flexible office spaces that cater to the dynamic needs of businesses," he added.