Mumbai— As multinational companies reassess their global operations, India’s real estate sector is primed to meet a growing appetite for flexible, future-ready workspaces, according to a new report by Knight Frank.
The study revealed that global corporates are targeting over 100 million square feet of new office space amid ongoing disruption, signaling a shift toward adaptable real estate strategies. Rather than delaying decisions in response to economic and geopolitical uncertainty, 63 percent of corporate real estate leaders surveyed are embracing flexible formats, shorter leases, and diversified locations to manage risk and attract talent.
“In India, this transformation is already well underway,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. “Office leasing hit 71.9 million square feet in 2024, a 21 percent year-on-year increase, and 2025 has begun even stronger with 28.2 million square feet leased in Q1 alone—up 74 percent from last year.”
Baijal noted that corporate real estate (CRE) has become a strategic core function, navigating tight timelines and cost constraints while adapting to rapidly evolving workstyles. “CRE is no longer a support role—it’s central to enterprise transformation,” he added.
The report also shows that half of surveyed firms expect their real estate footprint to grow over the next three to five years, amounting to 104 million square feet of demand. Notably, 27 companies are planning to expand by more than 20 percent, potentially adding 49 million square feet of new workspace.
“Companies are moving away from outdated portfolios,” said Dr. Lee Elliott, Partner and Head of Global Occupier Research at Knight Frank. “They’re not abandoning office space—they’re upgrading to better quality spaces in more strategic locations.”
Location strategies are shifting significantly. Firms are consolidating into high-performing, sustainable buildings and developing networks of regional hubs instead of relying on single headquarters. In major markets, demand is gravitating toward properties that offer flexibility, strong ESG credentials, and superior employee experiences.
“Global uncertainty isn’t slowing this momentum—it’s accelerating it,” Elliott said. “Businesses understand that adapting their real estate footprint is critical to staying competitive in today’s environment.” (Source: IANS)
