Why Office Occupiers in India Are Trading Up on Quality

Something is changing about what Indian occupiers want from their office space. It’s no longer just about how many square feet they take, it’s about the quality of that space, where it sits, and what it actually lets the business do. CBRE’s 2026 India Office Occupier Survey puts a number on this: 55% of occupiers weighing a relocation are chasing higher-quality buildings specifically to improve the employee experience and set themselves up for future growth (CBRE’s 2026 India Office Occupier Survey).

The leasing numbers back this up. Between 2025 and H1 2026, 61% of office leasing in India happened in core micro-markets, and 41% landed in investment-grade buildings.

For corporate real estate leaders, this means relocation, renewal, and expansion decisions can’t just be about rent anymore. Commute access, talent reach, asset quality, employee experience, technology, and ESG credentials are all now part of how office space gets evaluated.

What’s Behind This Shift Toward Quality?

A handful of factors are shaping how occupiers are deciding.

●        Location and connectivity. 70% of occupiers put commute and connectivity in their top three criteria for choosing office space, and 47% lean toward core or established micro-markets.

●        Access to talent. 56% rank talent accessibility in their top three site-selection criteria, which tells you how much location now factors into hiring and retention.

●        Building quality and the workplace experience. 35% rank asset quality and workplace experience among their top three criteria when picking a space within a city.

●        Sustainability. 52% now have defined ESG goals for their real estate portfolios, making sustainability a bigger factor in how workplace decisions get made.

●        Technology and flexibility. 38% point to smart building systems as among the features that will matter most as AI reshapes work, and 67% expect flexible space to be part of their portfolio within two years.

Quality is showing up in portfolio strategy too. Occupiers planning to expand are thinking about how new space can lift workplace quality overall, while those coming up on renewals are weighing business continuity against the need for well-located, high-quality space.

AI hasn’t dented this focus either. 57% of occupiers say AI hasn’t had a measurable impact on their leasing decisions so far. Even as AI changes how offices get used day to day, the priority stays on spaces that support collaboration, a strong employee experience, talent attraction, and whatever technology comes next.

What’s Actually Driving Demand for Better Space?

The office’s job has changed since hybrid work took hold

Hybrid work has reset what employees expect from the office. 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.

Where occupiers plan to put more money:

●        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 workplace priority for 50% of occupiers.

The upshot is pretty clear: the office now has to deliver something that’s hard to replicate remotely, which means designing around collaboration, interaction, and flexibility.

Talent and getting people there

Commute and connectivity, at 70%, and talent accessibility, at 56%, are the two most-cited criteria when occupiers pick a site. That emphasis on connectivity also shows up in the risks occupiers flag: 95% see traffic congestion and commute time as a threat to operations and employee experience, and 66% point to public transit access and last-mile connectivity as infrastructure concerns.

For occupiers, location isn’t just an address anymore. It’s about how easily employees can actually get to work and how well that location connects the business to the talent it needs.

Sustainability isn’t optional anymore

52% of occupiers now have defined ESG goals for their real estate portfolios, and among large companies, that climbs to 82%. As these commitments get more embedded in corporate real estate strategy, green certification and sustainable building features are turning into baseline expectations rather than nice-to-haves.

CBRE’s sustainability advisory helps organisations work toward green building certifications including LEED, IGBC, and GRIHA.

What occupiers expect from buildings and the technology inside them

Occupiers are also asking more of developers and landlords.

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

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

In other words, building quality isn’t just about the physical structure anymore. Technology, services, safety, and infrastructure all factor into the overall workplace experience.

What the Leasing Data Shows

Source: CBRE’s 2026 India Office Occupier Survey

Reading the numbers

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

Investment-grade assets also make up a sizeable share of leasing within those core micro-markets, which tells you asset quality matters alongside location.

New supply is following the same pattern, with investment-grade assets accounting for 57% of new office completions.

Put together, these numbers point to a market where occupiers want accessibility, quality, and future-readiness, all at once.

Why Location Still Comes First

Core micro-markets are still the default choice

When occupiers weigh up new office locations:

●        Core or established micro-markets: 47%

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

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

●        No clear preference, or it depends on requirements: 20%

This preference for established locations is even stronger among GCCs. 58% of GCC respondents favour core micro-markets, compared with 36% of non-GCC occupiers.

CBRE notes that for GCCs specifically, optimising commute and having ready infrastructure in place are important levers for attracting and keeping talent.

Availability is a real worry

40% of occupiers are concerned about finding high-quality, well-located space through 2028. Within that, 29% are specifically worried about space that ticks both boxes at once, high quality and well located.

For occupiers thinking about relocation or expansion, this makes early planning more important than ever. Understanding what’s available before the need becomes urgent gives businesses more options to choose from.

Transit access can make or break a decision

Public transport access is one of the biggest factors shaping how occupiers respond to a building. 38% would walk away from, reject, or push for a discount on a building that lacks public transport access.

This reinforces just how central connectivity is to the flight to quality. A great building that’s hard to get to won’t deliver the workplace experience or talent access occupiers actually need.

Infrastructure is reshaping entire micro-markets

Infrastructure investment is also changing the outlook for both established and up-and-coming business districts.

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

For occupiers, planned infrastructure is a real factor to weigh when judging a location’s long-term potential.

What Counts as a High-Quality Office Now?

A high-quality office isn’t just about the building anymore. Occupiers are weighing the whole experience an asset can offer.

These priorities make clear that quality isn’t a single dimension anymore. Location, accessibility, workplace experience, sustainability, technology, and building services all feed into how occupiers judge an asset.

A Checklist for Evaluating a Quality Relocation

A relocation decision needs to look past headline rent and consider how well the asset meets the organisation’s broader needs.

●        1. Location: Is the asset 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 offer reliable public transport and last-mile connectivity? This is one of the biggest factors in whether occupiers stay or walk away from an asset.

●        4. Rental economics: Weigh rent and escalation alongside lease terms, commute, asset quality, and overall employee experience. Only 30% of occupiers rank existing rentals and escalation in their top three criteria, versus 70% for commute and connectivity.

●        5. Employee experience: Does the building support collaboration, hybrid work, wellbeing, and organisational identity? 65% cite identity and culture through design as a focus area.

●        6. Sustainability: Does the asset match the organisation’s ESG goals and certification needs?

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

●        8. Flexibility: Can flexible space supplement the core lease? 67% of occupiers expect flexible space to be part of their portfolio within two years.

●        9. Long-term scalability: Can the location and asset support future growth? 77% of occupiers expect their India office portfolio to grow over the next two years.

The line between rent and overall value matters more than ever. Occupiers are weighing what an asset delivers on access, talent reach, employee experience, technology, and long-term flexibility, not just what it costs.

What This Means for India’s Office Market

For occupiers

Plan relocations and expansion well ahead of time, especially since high-quality space in established locations remains in short supply.

Flexible workspace can also give organisations a way to move fast and stay agile, without relying entirely on conventional leases.

For landlords and developers

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

●        Prioritising commute access and transit connectivity when selecting 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 with them on improving employee experience.

For investors

For investors, the flight to quality is a chance to upgrade older assets and bring them up to speed with what occupiers now expect.

CBRE’s perspective is that green certification is becoming close to standard, while commute access and asset experience offer stronger ways to stand out.

Retrofitting is getting attention too. 36% of occupiers are considering upgrading older offices for energy efficiency, which says a lot about how important improving existing stock has become, alongside building new.

FAQs

What does flight to quality mean in commercial real estate?

It describes occupiers moving toward higher-quality office buildings and locations. In CBRE’s 2026 India Office Occupier Survey, 55% of occupiers considering relocation are targeting 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 against a wider set of criteria 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 sits at the centre of the relocation decision. 70% of occupiers rank commute and connectivity in their top three criteria, and 47% prefer core or established micro-markets. GCCs lean toward core locations even more strongly, 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 rental premium. Public transport access stands out, with 18% of occupiers willing to pay a premium 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 took place in investment-grade assets. Within core micro-markets, 46% of leasing transactions were in investment-grade buildings.

The Takeaway for Corporate Real Estate Leaders

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

Before committing to a relocation, renewal, or consolidation, occupiers should be asking:

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 access?

Employee experience: Does it support collaboration, hybrid work, and the workplace identity teams expect?

Portfolio efficiency: Can the move meet current needs while leaving room for future growth?

Timing: Given how constrained high-quality, well-located space is, how much lead time do you need to secure the right option?

With demand for high-quality space in established locations staying strong, planning early gives occupiers 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 identify space that meets long-term portfolio requirements. Connect with CBRE.