Global corporations are eyeing more than 100 million square feet of new workspace, signaling a significant shift in the real estate landscape. Amid ongoing disruptions, a fresh wave of demand is taking shape, pushing companies to seek future-ready and adaptable spaces that combine performance, resilience, and intentional design. A new report released on Monday highlights how India's real estate sector is well-positioned to capitalize on this trend.
According to the report by Knight Frank, 63% of corporate real estate leaders expressed concerns over economic and geopolitical uncertainties. However, instead of stalling decisions, firms are proactively adapting. Strategies now include shorter lease terms, flexible office formats, and diversified locations that balance risk and talent accessibility. These measures reflect a more agile and calculated approach to space planning.
India is already responding to this evolving demand. In 2024, office leasing activity reached 71.9 million square feet—a 21% year-on-year increase. The momentum continues in 2025, with 28.2 million square feet leased in Q1 alone, representing a massive 74% growth compared to the previous year. Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that real estate strategy today is becoming central to enterprise transformation, rather than remaining a peripheral function.
The report indicates that 50% of companies expect their real estate footprint to expand in the next three to five years. This anticipated growth amounts to around 104 million square feet of new space. Notably, 27 of the surveyed companies project expansion by over 20%, generating a demand of approximately 49 million square feet from those businesses alone.
Corporates are increasingly letting go of outdated property portfolios in favor of modern, efficient workspaces. Rather than abandoning office space altogether, they are relocating to higher-quality premises, often expanding into multiple regions to align with decentralized and hybrid work models. Dr. Lee Elliott, Partner and Head of Global Occupier Research at Knight Frank, emphasized the growing preference for flexible, ESG-compliant buildings in globally connected cities rich in local talent.
The shift to workplace strategy is evident across key markets. Organizations are moving toward prime locations, consolidating operations into adaptable hubs instead of traditional headquarters. Despite global volatility, this transformation is gaining pace. Companies recognize that aligning real estate with broader business goals is crucial for success in today’s complex and fast-changing macroeconomic environment.
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