Home » Thinking About Upgrading Your Office in India? Here’s Why So Many Occupiers Are

Thinking About Upgrading Your Office in India? Here’s Why So Many Occupiers Are

by Mia

What occupiers want from office space in India is changing. It’s less about how many square feet you lease and more about the quality of that space, where it is, and what it actually enables for your team. CBRE’s 2026 India Office Occupier Survey found that 55% of occupiers considering a move are specifically after higher-quality buildings to improve employee experience and support where the business is headed (CBRE’s 2026 India Office Occupier Survey).

You can see this playing out in leasing activity. Between 2025 and H1 2026, 61% of office leasing in India happened in core micro-markets, and 41% was in investment-grade buildings.

If you’re leading corporate real estate, this means your relocation, renewal, and expansion decisions can’t just come down to rent anymore. Commute access, talent reach, asset quality, employee experience, technology, and ESG credentials are all factoring in now.

F5 Networks | CBRE India

So What’s Pushing This Shift Toward Quality?

A few things are shaping how occupiers like you are making decisions.

  • Location and connectivity. 70% of occupiers put commute and connectivity in their top three criteria, and 47% prefer core or established micro-markets.
  • Getting to talent. 56% rank talent accessibility in their top three site-selection factors, showing just how much location matters for hiring and keeping people.
  • Quality and experience. 35% rank asset quality and workplace experience in their top three when picking a space within a city.
  • Sustainability. 52% now have defined ESG goals for their real estate, making sustainability a bigger piece of the puzzle.
  • Tech and flexibility. 38% say smart building systems will matter most as AI changes how we work, and 67% expect flexible space to be part of their portfolio within two years.

Quality is showing up in broader portfolio thinking too. If you’re expanding, you’re probably also thinking about how new space can raise your overall workplace quality. If you’re coming up on a renewal, you’re likely weighing continuity against the need for better, well-located space.

AI hasn’t changed this focus, at least not yet. 57% of occupiers say AI hasn’t had a measurable impact on their leasing decisions so far. Even as AI reshapes how offices get used, what matters most is still an office that supports collaboration, employee experience, attracting talent, and whatever technology comes next.

What’s Really Driving Demand for Better Space?

The office’s role has shifted since hybrid work took over

Hybrid work has changed what your employees expect when they do come in. 77% of surveyed occupiers report utilisation above 50%, and investment is increasingly going toward spaces built for collaboration, focused work, and a better overall experience.

Here’s where occupiers are planning to spend more:

●        Enclosed or soundproof spaces for video calls: 52%

●        WorkTech like booking apps and sensors: 50%

●        Collaborative spaces for unscheduled catch-ups: 48%

●        Meeting rooms for up to five people: 47%

Accommodating hybrid work is still a top priority for 50% of occupiers.

The takeaway? Your office needs to offer something people can’t get working from home, which means designing for collaboration, interaction, and flexibility.

Talent and getting people there

Commute and connectivity (70%) and talent accessibility (56%) are the two biggest factors occupiers cite when picking a site. You can see that concern about connectivity show up elsewhere too: 95% see traffic congestion and commute as a threat to operations and employee experience, and 66% flag public transit access and last-mile connectivity as infrastructure worries.

For you, location isn’t just an address. It’s about how easily your people can actually get to work, and how well that location connects you to the talent pool you need.

Sustainability isn’t a nice-to-have anymore

52% of occupiers now have defined ESG goals for their real estate, and that jumps to 82% among large companies. As these commitments become more baked into corporate real estate strategy, green certification and sustainable features are turning into baseline expectations rather than extras.

CBRE’s sustainability advisory can help your organisation work toward certifications like LEED, IGBC, and GRIHA.

What you can expect from buildings and their tech

Occupiers are also expecting more from developers and landlords.

75% want developer support on safety and security infrastructure, and 69% expect help with app-based service experiences.

As AI changes how work gets done, smart building systems are becoming especially relevant. 38% name features like sensor-driven utilisation and predictive maintenance as the ones that matter most, making smart systems the top-ranked feature in this category.

So building quality isn’t just about the physical structure anymore. Technology, services, safety, and infrastructure all shape the workplace experience.

What the Leasing Numbers Tell You

Indicator Share
All office leasing in core micro-markets 61%
All office leasing in investment-grade assets 41%
Leasing transactions in core micro-markets that were in investment-grade buildings 46%
New office completions that were investment-grade assets 57%

Source: CBRE’s 2026 India Office Occupier Survey

What’s behind the numbers

What occupiers say they want and what’s actually happening in the market line up pretty closely. 47% of occupiers prefer core or established micro-markets, and a good chunk of leasing is landing right there.

Investment-grade buildings also make up a big share of leasing within those core micro-markets, so quality is mattering alongside location, not instead of it.

New supply is following suit too, with investment-grade assets making up 57% of new office completions.

Together, this points to a market where you, like most occupiers, are after a mix of accessibility, quality, and future-readiness.

Why Location Still Comes First

Core micro-markets are still where most occupiers want to be

When occupiers weigh up new office locations, here’s how it breaks down:

●        Core or established micro-markets: 47%

●        A mix of core and non-core: 25%

●        Non-core or emerging micro-markets: 8%

●        No clear preference, or it depends: 20%

This pull toward established locations is even stronger if you’re a GCC. 58% of GCC respondents prefer core micro-markets, compared with 36% of non-GCC occupiers.

For GCCs especially, CBRE points out that optimising commute and having solid infrastructure in place really help with attracting and keeping talent.

Finding the right space is getting harder

40% of occupiers are worried about finding high-quality, well-located space through 2028. Of those, 29% are specifically concerned about getting both at once, quality and location.

If you’re thinking about relocating or expanding, this is a good reason to start planning early. Knowing what’s actually available before you need it urgently gives you more options to choose from.

Transit access can be a dealbreaker

Public transport access is one of the biggest things shaping how occupiers respond to a building. 38% would walk away from, reject, or push for a discount on a building without it.

This shows just how much connectivity matters in this shift toward quality. A great building that’s hard to reach won’t give you the workplace experience or talent access you’re actually after.

Infrastructure is changing the map

Infrastructure investment is also reshaping how established and up-and-coming business districts stack up.

CBRE Research tracks upcoming metro, road, and airport projects across Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Pune, Chennai, and Kolkata. Districts set to benefit include Outer Ring Road in Bengaluru, BKC and Powai in Mumbai, and Financial District in Hyderabad.

For you, planned infrastructure is worth factoring in when you’re judging a location’s long-term potential.

What Actually Makes an Office “High Quality” Now?

It’s not just about the building anymore. Occupiers are weighing the whole experience an asset delivers.

Attribute What occupiers report
Commute and connectivity 70% rank it among their top-three site selection criteria
Talent accessibility 56% rank it among their top-three criteria
Asset quality and workplace experience 35% rank it among their top-three criteria
Asset stature 24% rank it among their top-three criteria
Safety and security 23% rank it among their top-three criteria; 75% want developer support
Green building certification 26% would exit, reject or seek a discount if absent
Health and wellbeing certification 30% would exit, reject or seek a discount if absent
Smart building systems 38% cite them among the features that would matter most in an AI-driven future of work

So quality isn’t one thing anymore. Location, accessibility, workplace experience, sustainability, technology, and building services all go into how you’d judge an asset.

A Checklist for Evaluating Your Next Move

A relocation decision needs to go beyond the headline rent and look at how well the asset fits your organisation’s broader needs.

1. Location: Is it in a core or established micro-market, or somewhere backed by planned infrastructure?

2. Building quality: Does it meet current expectations for workplace experience, safety systems, certifications, and integrated campus features?

3. Accessibility: Does it have reliable public transport and last-mile connectivity? This is one of the biggest factors in whether occupiers stay or leave.

4. Rental economics: Weigh rent and escalation alongside lease terms, commute, asset quality, and employee experience. Only 30% of occupiers put rentals and escalation in their top three, compared with 70% for commute and connectivity.

5. Employee experience: Does it support collaboration, hybrid work, wellbeing, and your organisation’s identity? 65% cite identity and culture through design as a focus.

6. Sustainability: Does it line up with your ESG goals and certification needs?

7. Technology and infrastructure: Are smart building systems, app-based services, and solid infrastructure in place?

8. Flexibility: Can flexible space supplement your core lease? 67% of occupiers expect flexible space in their portfolio within two years.

9. Long-term scalability: Can the location and asset support where you’re headed? 77% of occupiers expect their India portfolio to grow over the next two years.

The line between rent and overall value matters more than ever. You’re not just paying for space, you’re weighing access, talent reach, employee experience, technology, and flexibility alongside what it costs.

What This Means Depending on Where You Sit

If you’re an occupier

Start planning your relocation or expansion well ahead of time, especially since high-quality space in established locations is getting harder to find.

Flexible workspace can also give you a way to move fast and stay agile, without betting everything on a conventional lease.

If you’re a landlord or developer

The opportunity is building assets that match what occupiers increasingly want:

●        Prioritising commute access and transit connectivity when picking sites

●        Designing AI-ready buildings with smart systems and reconfigurable spaces

●        Investing in workplace experience and employee-focused amenities

●        Developing quality office space in select Tier-II cities

●        Partnering with occupiers on safety, security, and employee experience

75% of occupiers want developer support on safety and security infrastructure, and 61% expect developers to partner on improving employee experience.

If you’re an investor

The flight to quality is a chance to upgrade ageing assets and bring them in line with what occupiers expect now.

CBRE sees green certification becoming close to standard, while commute access and asset experience offer better ways to stand out.

Retrofitting is picking up too. 36% of occupiers are considering upgrading older offices for energy efficiency, which says a lot about how much improving existing stock matters, not just building new.

Questions People Usually Ask

What does flight to quality mean in commercial real estate?

It’s occupiers moving toward higher-quality office buildings and locations. In CBRE’s 2026 India Office Occupier Survey, 55% of occupiers considering relocation are after better-quality buildings to improve employee experience and support future growth.

Why are companies moving to higher-quality offices in India?

Companies are judging office space on a wider set of factors now, including commute and connectivity, talent accessibility, asset quality, workplace experience, sustainability, and technology. Commute and connectivity rank highest at 70%, followed by talent accessibility at 56% and asset quality and workplace experience at 35%.

How does location influence office relocation decisions?

Location is central to it. 70% of occupiers rank commute and connectivity in their top three criteria, and 47% prefer core or established micro-markets. GCCs lean even more toward core locations, at 58%.

Are occupiers willing to pay a premium for quality features?

The survey suggests sustainability is increasingly seen as a baseline requirement rather than something that commands a premium. Public transport access stands out though, with 18% of occupiers willing to pay extra for it.

What share of India’s office leasing is in investment-grade assets?

During 2025–H1 2026, 41% of all office leasing in India was in investment-grade assets. Within core micro-markets, 46% of leasing transactions were in investment-grade buildings.

Where This Leaves You

India’s flight to quality is showing up clearly in both occupier strategy and market activity. The question isn’t just how much space you need anymore, it’s which assets can actually support your growth, talent access, and workplace expectations over the long run.

Before you commit to a relocation, renewal, or consolidation, ask yourself:

Quality: Does the asset meet current standards for safety, technology, and workplace experience?

Location: Is it in a well-connected micro-market with reliable public transport?

Employee experience: Does it support collaboration, hybrid work, and the identity your team expects?

Portfolio efficiency: Can the move meet your current needs while leaving room to grow?

Timing: Given how tight high-quality, well-located space is, how much lead time do you need?

With demand for high-quality space in established locations staying strong, planning early gives you more choice.

Planning a relocation, renewal, or consolidation? CBRE’s transaction advisors and workplace strategists work with occupiers across India to evaluate locations, assess asset quality, and find space that meets your long-term portfolio needs. Connect with CBRE.