Ease of Doing Business Reforms Drive India's Office Space Boom

India’s office market is picking up pace, and the numbers tell the story. Gross leasing across the country’s 7 key markets rose 15% year-on-year in the January-March quarter to 18.3 million square feet, according to Colliers. The push is coming from strong occupier demand and the steady expansion of global capability centres (GCCs).

What stands out is the timing. Even as global trade remains under pressure, India’s office sector is holding firm. For many global firms, the country is no longer just an option. It’s a growth market. Much of this confidence is tied to continued improvements in ease of doing business (EoDBs). 

Govt reforms and the marked change 

Over the past decade, India has steadily worked to simplify regulations, improve transparency and make doing business less cumbersome. The results have been visible. India’s jump to 63rd rank in the World Bank’s Ease of Doing Business Report 2019, up 79 places, signalled a shift in global perception. Policy momentum has continued since then. The Department for Promotion of Industry and Internal Trade (DPIIT) rolled out measures such as the Business Reforms Action Plan, aimed at cutting red tape and speeding up approvals. The broader goal has been clear: make it easier for companies to enter, operate and scale.

FDI surge fuels expansion

That effort is now showing up in investment and business activity. Government data show that between 2014 and 2025, India attracted $748.38 billion in foreign direct investment (FDI), up 143% over the previous 11-year period.  These trends in India's FDI are an endorsement of its status as a preferred investment destination amongst global investors.

At the same time, the number of active registered companies rose from 1.55 lakh in 2020-21 to 1.98 lakh in 2025-26 (as of February 3, 2026), growth of more than 27% in 5 years. More companies mean more expansion and higher need for office spaces. 

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Global firms deepen India footprint

Global businesses continue to scale up in India, drawn by its cost advantage and large pool of English-speaking, tech-skilled talent. This has pushed India into the league of Asia-Pacific’s top office markets, alongside Japan and Singapore.

Fresh data also underscores the trend. Foreign company registrations in India hit a 5-year high in 2025, with 92 new overseas firms entering the market, up sharply from 53 in 2024. Notably, about 87% of these entrants were in the services sector, ranging from business services and finance to real estate and communications, pointing directly to rising demand for office-based operations. The concentration of these firms in key states such as Maharashtra, Karnataka, Delhi and Gujarat further signals where workspace demand is intensifying.

Shift towards integrated offices

The nature of demand is also evolving. Companies are not just looking for square footage. They want integrated, high-quality spaces that support productivity and employee experience. This has led to rising interest in modern office developments that combine workspaces with lifestyle amenities and digital infrastructure.

Investors are responding in kind, backing projects that align with these expectations. From green buildings to tech-enabled campuses, the focus is shifting to future-ready work environments.

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Policy support is expected to keep the momentum going. The Union Budget 2026 has doubled down on the EoDB push, with measures aimed at improving tax certainty, reducing compliance burdens and promoting trust-based governance. These steps are likely to further ease business expansion plans.

The pipeline ahead looks strong. CBRE estimates that about 85% of domestic companies plan to expand their office portfolios over the next two years. This is being driven by a mix of return-to-office strategies and long-term growth plans.

Future-ready demand reshapes sector

For the real estate sector, the message is clear: demand is not just rising, it is changing. Occupiers want smarter, greener and more flexible spaces. Developers, in turn, are upgrading assets, retrofitting older buildings and investing in digital ecosystems. India’s office story is no longer just about resilience; it’s about momentum. And, India’s ease of doing business reforms is right at the centre of it.