Office space to maintain growth momentum in 2025: CBRE
Driven by resilient economic fundamentals and a good employment outlook, the office sector in the country is expected to maintain its strong growth momentum in 2025. GCCs are expected to account for about 35-40 per cent of the total office space absorption across top cities.
The growth momentum will also be backed by a readily available talent pool, and favourable government policies, including relaxation of SEZ denotification norms. “These would boost occupiers’ confidence in expanding their real estate portfolios,” CBRE South Asia, a property consultancy firm, said.
The firm released the report ‘“2025 India Market Outlook’ on Wednesday, assessing the sector’s health and growth prospects.
“Development completions would primarily be led by high-quality investment-grade assets, with about 60-65 per cent of the new supply likely to be a part of integrated tech parks in top cities during the year,” the report said.
While the established hubs such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai remain highly attractive, other key cities such as Chennai and Pune are poised to gain further traction. This trend is also likely to stimulate leasing activity in tier-II cities.
“The country’s economic outlook remains positive, demonstrating resilience despite persistent global economic uncertainties. Stabilising inflationary trends have enabled the RBI to reduce the key policy rate in February, while further repo rate adjustments could be anticipated in the subsequent quarters,” Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said.
Mixed-use developments
The growing number of large-scale buildings indicates a shift towards integrated or mixed-use developments, which aim to provide a comprehensive environment for both work and personal life.
Domestic technology firms, seeking access to broader talent pools and geographically diversified risk profiles, are projected to drive office leasing activity significantly. Similarly, domestic banks are likely to expand their office footprints to support the growth of their technology-integrated services, sales, and customer support teams.
NAREDCO’s view
G Hari Babu, National President of NAREDCO (National Real Estate Development Council) felt that the outlook for the country’s office sector in 2025 appears steady, supported by stable economic fundamentals, policy reforms, and a consistent demand for quality workspaces.
“The ongoing supply of investment-grade office assets, especially within integrated tech parks, reflects developers’ alignment with evolving occupier needs,” he said.
While established metro cities will continue to anchor growth, it is noteworthy that markets like Chennai, Pune, and select Tier-II cities are gradually gaining traction. These trends indicate a shift in occupier strategies, aiming at geographic diversification and operational flexibility.
As always, sustained progress will depend on continued policy support, timely project deliveries, and the ability of stakeholders to adapt to changing workplace dynamics.
