Flight to Quality: What’s Really Driving India’s Office Portfolio Expansion in 2026

India’s office market is showing strong expansion intent in 2026. According to CBRE’s 2026 India Office Occupier Survey, 77% of occupiers expect their India office portfolios to grow over the next two years, while 30% anticipate a significantly larger footprint of more than 30%.

Behind the headline expansion number is a more specific story: occupiers are not just taking more space, they are being selective about where and what kind of space. This guide leads with that quality and location theme.

Why Are Occupiers Prioritising Higher-Quality Office Space?

Flight to quality is a major factor shaping relocation decisions.

The survey finds that 55% of occupiers cite flight-to-quality relocation as their relocation strategy. At the same time, 40% are concerned about the availability of high-quality, well-located space through 2028.

This preference is visible in leasing activity.

During 2025-H1 2026, 61% of leasing took place in core micro-markets, while 46% of leasing within core micro-markets was in investment-grade buildings.

Location preferences reinforce the trend. Forty-seven percent of occupiers prefer core or established micro-markets, while 25% prefer a combination of core and non-core micro-markets.

The implication for office space strategies in India is clear: expansion is increasingly about securing the right quality and location, rather than simply increasing the amount of space. For occupiers actively scoping their next move, CBRE’s commercial property listings offer a starting point for assessing what’s currently available in core markets.

What Does the CBRE India Office Occupier Survey 2026 Reveal?

Three out of four surveyed occupiers expect their India office portfolio to grow over the next two years.

More significantly, 30% are targeting portfolio growth of more than 30%, compared with 18% in 2025. The survey describes this as a sharp increase in the share of occupiers pursuing aggressive expansion.

GCCs are also firmly part of the expansion narrative. 75% of surveyed GCCs expect their portfolios to increase over the next two years.

The report also finds that 83% of GCC respondents report office utilisation above 50%, reinforcing the continued relevance of physical workplaces within these organisations.

India Office Expansion: The Numbers at a Glance

Source: CBRE’s 2026 India Office Occupier Survey.

The expansion story is not simply about adding more square feet. Occupiers are balancing expansion with consolidation, lease renewals, relocation to higher-quality assets and selective use of flexible space.

For corporate real estate leaders and portfolio managers, the question is becoming more strategic. Where should growth happen, what type of space should be secured, and how much flexibility should be built into the portfolio?

Why Is Demand for Office Space in India Expanding?

The survey points to a combination of portfolio requirements, workplace utilisation and changing expectations around the quality and location of office space.

The physical workplace continues to have a significant role in corporate portfolios. The survey reports that 77% of surveyed occupiers have average office utilisation above 50%.

At the same time, AI adoption is progressing across organisations. 93% of occupiers report being at some stage of AI adoption. Yet the impact on leasing strategy remains limited for many organisations. 57% report no measurable impact from AI on leasing.

This is an important distinction for portfolio leaders. AI adoption is advancing, but the survey does not indicate that this has translated into a broad reduction in office requirements.

What Portfolio Strategies Are Occupiers Using?

Expansion is increasingly being paired with portfolio optimisation.

Over the next 12 months, 47% of occupiers plan to pursue expansion and consolidation. Over the next 24 months, 40% plan the same strategy.

Lease renewals also remain part of the strategy. The survey records 24% planning lease renewals over the next 24 months. Flexible office space is another component, with 17% planning to increase its use over the same period, compared with 13% over the next 12 months.

This creates a more nuanced picture of portfolio growth:

• Expand where additional capacity is required.

• Consolidate where the existing footprint can be made more efficient.

• Renew locations that continue to meet business requirements.

• Relocate where asset quality and workplace experience need to improve.

• Increase flexible space where portfolio requirements call for greater adaptability.

For corporate real estate teams, the portfolio is increasingly less like a fixed footprint and more like a set of moving parts that need to work together.

Which Sectors Are Expanding Office Portfolios?

Expansion intent is visible across the major sectors covered by the survey.

Source: CBRE’s 2026 India Office Occupier Survey.

Engineering & Manufacturing

83% of surveyed E&M firms indicate portfolio expansion over the next two years.

During 2025-H1 2026, E&M firms leased approximately 11 million sq. ft., accounting for 8% of total absorption.

Research, Consulting & Analytics

82% of surveyed RCA firms indicate portfolio expansion over the next two years.

RCA firms leased approximately 13 million sq. ft. during 2025-H1 2026, representing 10% of total absorption.

BFSI

80% of surveyed BFSI firms indicate portfolio expansion over the next two years.

BFSI firms leased approximately 20 million sq. ft. during 2025-H1 2026, accounting for 15% of total absorption.

Technology

77% of surveyed technology firms indicate portfolio expansion over the next two years.

Technology firms leased approximately 28 million sq. ft. during 2025-H1 2026, representing 22% of total absorption.

Life Sciences

68% of surveyed Life Sciences firms indicate portfolio expansion over the next two years.

The sector leased approximately 5 million sq. ft. during 2025-H1 2026, accounting for 4% of total absorption.

Together, these figures indicate that expansion intent is not concentrated in a single industry. The strength of the signal varies by sector, but portfolio growth is evident across technology, BFSI, E&M, RCA and Life Sciences.

What Does the Office Market Outlook 2026 Mean for Occupiers?

The office market outlook for 2026 points to expansion with greater selectivity.

The survey does not suggest that occupiers are pursuing growth through one universal model. Instead, organisations are combining expansion with consolidation, renewals, relocation and flexible workspace strategies.

This makes portfolio planning more important than simply forecasting headcount.

A corporate real estate team evaluating its next move should consider:

• Current utilisation: How effectively is existing space being used?

• Portfolio efficiency: Can expansion and consolidation happen together?

• Location: Does the current or proposed location meet business and workforce requirements?

• Asset quality: Does the building support the desired workplace experience?

• Flexibility: Where could flexible space complement the core portfolio?

• Timing: How much lead time is required to secure the preferred asset and location?

These questions can help companies translate broad expansion intent into a practical office market outlook for their own portfolio.

Should Occupiers Lock In Office Space Now or Wait?

Companies with clear expansion requirements should start planning early, particularly when their strategy depends on high-quality space in established locations.

The reason is not simply the 77% expansion statistic. It is the combination of expansion intent and occupier preference for quality and established locations.

Forty percent of occupiers are concerned about securing high-quality, well-located space through 2028. Meanwhile, 61% of leasing in 2025-H1 2026 occurred in core micro-markets.

For occupiers with less certainty, the survey’s portfolio strategies offer alternatives to an immediate large commitment. Expansion can be combined with consolidation, renewals or flexible workspace.

The decision should therefore be based on the degree of business certainty rather than a blanket “lock in” or “wait” approach.

What Does This Mean for Real Estate Growth in India?

The survey’s findings point to a broader story of real estate growth in India, shaped by occupier expansion, portfolio optimisation and demand for higher-quality workplaces.

For developers and landlords, the findings indicate that occupiers are placing considerable importance on established locations and investment-grade buildings. For corporate occupiers, they reinforce the importance of defining location and quality requirements before additional space is secured.

For investors and portfolio managers, the combination of expansion intent and flight to quality provides a useful lens for evaluating how assets are positioned against evolving occupier expectations.

The key takeaway is that real estate growth in India is not simply about adding supply. It is also about aligning the right assets with the requirements of occupiers planning their next phase of growth.

FAQ: India Office Expansion in 2026

Is demand for office space in India growing in 2026?

Yes. CBRE’s 2026 India Office Occupier Survey finds that 77% of surveyed occupiers expect their office portfolios to grow over the next two years.

Which sectors are most likely to expand office space?

Engineering & Manufacturing has the highest expansion intent at 83%, followed by RCA at 82%, BFSI at 80%, Technology at 77% and Life Sciences at 68%.

What is driving commercial real estate demand?

Portfolio expansion, continued workplace utilisation and demand for higher-quality, well-located assets are key signals in the survey. The survey also finds that 55% of occupiers cite flight-to-quality relocation as their relocation strategy.

Should companies expand or consolidate their office portfolios?

The survey indicates that many are doing both. Forty-seven percent plan expansion and consolidation over the next 12 months, while 40% plan this strategy over the next 24 months.

Why does office space absorption matter for portfolio planning?

Office space absorption provides context for current leasing activity and sector demand. During 2025-H1 2026, technology, BFSI, RCA, E&M and Life Sciences collectively recorded substantial leasing activity, while the overall market’s office stock surpassed 1 billion sq. ft. in Q2 2026.

The Takeaway for Corporate Real Estate Leaders

The office market outlook for 2026 is defined by a strong expansion signal, but the data points towards a more considered approach to portfolio strategy.

With 77% of occupiers expecting portfolio growth and 30% targeting an increase of more than 30%, organisations with clear growth plans have a strong reason to assess their requirements now.

The next step is to translate that intent into a portfolio plan: identify the markets and asset qualities that matter most, determine where expansion and consolidation can work together, and decide where flexibility can complement the core footprint.

Planning your next phase of growth? CBRE’s transaction advisors and workplace strategists work with occupiers across India to assess portfolio requirements, evaluate expansion and consolidation opportunities, and identify the right markets and assets to support their business objectives. Connect with CBRE.

Source: CBRE India Office Occupier Survey 2026. All statistics and findings in this article are based solely on the report.