India Office Space Market is Expected to Register a 7.04% CAGR Through 2031
Rapid Growth of the IT & Technology Sector and Expansion
of Global Capability Centers (GCCs) are likely to propel the market during the
forecast period.
According to
TechSci Research report, “India Office Space Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Office Space Market was valued at USD 273
Billion in 2025 and is expected to reach USD 414 Billion by 2031 with a CAGR of
7.04% during the forecast period.
The integration of technology into
office design and management has become a central trend in the Indian office
space market. With evolving workstyles and increasing demand for operational efficiency,
occupiers are prioritizing smart office features that enhance both employee
experience and facility performance.
Smart workspaces typically include
digital access systems, IoT-enabled lighting and climate control, occupancy
sensors, high-speed wireless connectivity, and AI-based tools for managing
conference rooms, security, and energy use. These features enable better space
utilization, improve comfort, and reduce operational costs. Moreover, smart
offices support contactless operations—an important consideration in the
post-pandemic world.
Tenants are increasingly opting for
buildings that offer mobile apps for facility access, visitor management, food
ordering, and real-time feedback on workspace comfort. This not only simplifies
daily operations but also aligns with the tech-savvy expectations of today’s
workforce.
From a landlord's perspective, investing
in smart infrastructure makes buildings more attractive to high-value tenants
and can support premium rental pricing. Smart systems also provide data
insights that help optimize building performance, enhance maintenance planning,
and ensure compliance with health and safety standards.
Flexible workspace providers are at the
forefront of this trend, with many offering advanced tech platforms that let
companies manage hybrid work schedules, monitor attendance, and book desks
on-demand. Even traditional office developers are collaborating with PropTech
startups to upgrade their offerings.
Looking ahead, technology will play a
greater role in ensuring office spaces remain agile, efficient, and
employee-centric. Features like AI-driven space design, digital twins for
facilities, and integrated workplace experience platforms are expected to become
more common.
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Based
on End User, The IT and Telecommunications sector dominates the Indian office
space market due to its sheer scale, consistent expansion, and central role in
the country's economic and digital transformation. Several key factors explain
this dominance:
IT
and telecom companies employ a vast number of professionals, often requiring
expansive office setups to accommodate software development, customer support,
back-office operations, and engineering teams. Many firms operate in a
campus-style format, necessitating large contiguous floor plates, which
significantly drive demand in business parks and SEZs.
India
is one of the world’s top destinations for IT outsourcing and software
services. Global technology companies establish large delivery centers in India
to leverage its cost advantage and skilled talent pool. Cities like Bengaluru,
Hyderabad, Pune, and Chennai host numerous such facilities, contributing
heavily to leasing activity.
Even
amid global economic headwinds, IT and telecom firms continue to grow due to
rising digital adoption, cloud computing, AI integration, and cybersecurity
needs. This steady expansion leads to recurring demand for office space,
especially in technology-focused corridors.
Tech
firms often act as anchor tenants in major commercial developments, driving
occupancy and setting rental benchmarks. Their presence also attracts ancillary
service providers, further boosting demand.
The
sector has also shown flexibility in adopting hybrid work while maintaining
core operations from physical offices, especially for secure projects. This
balance sustains long-term demand for well-designed, future-ready workspaces.
Based
on Region, North India is rapidly emerging as one of the fastest-growing
regions in the Indian office space market due to a combination of strategic
factors that make it an attractive destination for businesses, investors, and
developers.
North
India, particularly cities like Delhi NCR (National Capital Region), Gurugram,
Noida, and Chandigarh, benefits from superior connectivity, both within India
and internationally. Delhi, as the capital city, serves as a central hub for
business, government, and diplomatic activities. The presence of major
airports, advanced metro systems, and highway infrastructure makes these cities
easily accessible for both domestic and global businesses.
North
India has seen significant expansion in various sectors, especially in IT/ITES,
manufacturing, and e-commerce. Cities like Gurugram have become key centers for
tech and business process outsourcing (BPO) companies due to their proximity to
the national capital and availability of a skilled workforce. Additionally, the
rise of startups and SMEs in sectors such as fintech, edtech, and consulting
further drives the demand for office spaces in this region.
Continuous
government initiatives aimed at improving infrastructure, such as the
development of new metro lines, road networks, and special economic zones
(SEZs), have attracted substantial investments. For instance, the development
of dedicated commercial hubs like the Dwarka Expressway and new office
complexes in Noida and Greater Noida is fueling this growth.
Compared
to the high rental costs in cities like Mumbai and Bengaluru, North India
offers more cost-effective office space options, which is a key attraction for
both multinational companies and smaller enterprises looking to minimize
operational costs while maintaining access to a robust business environment.
Major companies
operating in the India Office Space Market are:
- WeWork Inc.
- CBRE Group,
Inc.
- JLL (Jones Lang
Lasalle Incorporated)
- Colliers
International Group Inc.
- Savills Plc
- Keller Williams
Realty, Inc.
- Cushman &
Wakefield PLC
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“The Indian office space market presents
a robust growth opportunity driven by the expanding IT sector, rising demand
from Global Capability Centers (GCCs), and the proliferation of startups and
flexible workspace operators. With the continued push toward digital
transformation, infrastructure upgrades in Tier-2 cities, and evolving
workplace models like hybrid work, the market is diversifying rapidly.
Institutional investments and REIT participation are enhancing transparency and
boosting investor confidence. As occupiers prioritize sustainability,
technology integration, and employee well-being, there is strong potential for
developers and investors to capitalize on high-quality, future-ready office
assets across both established and emerging business hubs.”
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based
management consulting firm.
“India Office Space
Market, By Building Type (Retrofits, New Buildings), By
End User (IT & Telecommunications, Media & Entertainment, Retail, Consumer
Goods, Others) By Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth
potential of India Office Space Market and provides statistics &
information on Market size, structure and future Market growth. The report
intends to provide cutting-edge Market intelligence and help decision-makers make
sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
India Office Space Market.
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