CBRE Survey: Indian Companies Increasing Flexible Office Spaces and ESG Focus
New Delhi, India – CBRE South Asia Pvt. Ltd. has released its ‘2024 India Office Occupier Survey’ findings. The survey reveals that the number of companies with over 10% of their office space in flexible workspaces will rise from 42% in Q1 2024 to 58% by 2026. This shift highlights a growing trend towards flexible office spaces and a strong commitment to environmental, social, and governance (ESG) goals among Indian companies.
Over the next year, about 30% of companies plan to increase their use of flexible office spaces. Flexible space operators are becoming key players in the Indian office leasing market, holding over 15% of quarterly leasing activity. By the end of 2024, the total flexible space stock is expected to reach 80 million square feet.
Companies are also likely to expand into more office locations to accommodate a growing workforce and explore new markets. Many firms are decentralizing their offices, using a mix of traditional and flexible spaces. However, 17% of companies aim to consolidate their office spaces to streamline operations and cut costs, aligning with the trend of moving to higher-quality office spaces.
Nearly 70% of companies plan to grow their office portfolios over the next two years, including 73% of domestic corporations and 78% of global firms. Sector-specific trends show that 88% of BFSI firms, 67% of Global Capability Centers, and 53% of technology companies plan significant expansions.
While hybrid working models are common, there is a shift towards an ‘office-first’ approach. The survey finds that 90% of respondents prefer to be in the office for at least three days a week, with more employees favoring full-time office presence. This reflects a tightening of hybrid work policies to emphasize in-person collaboration and structured work environments.
Modern, sustainable office developments are expected to capture a larger market share. About 67% of companies plan to allocate over 5% of their project budgets towards ESG initiatives. This focus on sustainability is driving landlords to improve energy efficiency and enhance employee experiences.
There is also a growing interest in expanding into smaller cities. Tier-II and Tier-III cities are becoming attractive due to their skilled talent pools, competitive costs, and improving infrastructure. Technology and BFSI firms are particularly active in these areas, leading to modern office parks and more flexible workspace operators.
Anshuman Magazine, Chairman & CEO of CBRE India, South-East Asia, Middle East & Africa, noted the robust surge in occupier activity in the Indian office sector, driven by expanding commercial office footprints and high demand for quality spaces. Ram Chandnani, Managing Director of Advisory & Transactions Services at CBRE India, highlighted the preference for ‘office-first’ policies and the focus on workplace transformation to enhance employee experience and achieve business goals.
