70 pc of real estate leaders back simultaneous cost savings, long-term transformation: Report
New Delhi, Aug 4
Corporate real estate leaders are increasingly pursuing cost optimisation and long-term transformation in parallel which is a shift from the traditional approach of sequencing efficiency measures before strategic investments, according to a report released on Tuesday.
A report by Knight Frank -- based on a global survey of senior CRE executives -- found that 70.8 per cent of respondents believe organisations can achieve immediate cost savings while continuing to invest in long-term transformation initiatives.
More than 53 per cent also expect CRE teams to play a broader strategic role in areas such as talent management, risk mitigation and enterprise-wide business transformation, it added.
In addition, technology is emerging as a key enabler of this shift, with 50.8 per cent of organisations willing to integrate artificial intelligence into workplace operations to improve productivity.
The report also noted that companies are focusing on targeted AI deployment within core workflows rather than large-scale workplace redesign.
Globally, occupiers are moving away from expansion-led real estate strategies towards optimising existing portfolios and investing in high-quality, sustainable workplaces that foster collaboration, learning and innovation.
However, India continues to stand out as a growth market, with office leasing across the country's major markets touching 86.4 million sq ft in 2025, an increase of 20 per cent year-on-year and 43 per cent higher than the pre-pandemic peak recorded in 2019.
"India's strong leasing performance reflects its growing strategic relevance in global corporate real estate strategies. Corporate real estate leaders today are expected to deliver cost efficiency and transformation in parallel, and the findings indicate that these are no longer competing priorities but aligned drivers shaping workplace decisions," said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.
The report showed that demand was driven largely by Global Capability Centres (GCCs), which leased 32.6 million sq ft, accounting for 38 per cent of total office absorption.
These centres are increasingly undertaking higher-value functions across technology, analytics, research and product development.
Additionally, the report highlighted growing demand for flexible workspaces and premium office assets.
Flexible workspace operators leased a record 18.6 million sq ft in 2025, up 18 per cent from a year earlier, while Grade A assets accounted for 91 per cent of all office leasing transactions.
— IANS
Reader Comments
91% Grade A leasing is impressive—shows companies want quality spaces. But we have to ensure this growth doesn't inflate rentals in cities like Bengaluru and Hyderabad beyond what startups can afford. Need balanced development.
Interesting global shift towards parallel cost-cutting and transformation. India's 20% YoY leasing growth is remarkable, but I wonder how much of this is genuine demand versus companies consolidating regional offices into Indian hubs for cost arbitrage.
Flexible workspace leasing at record 18.6 million sq ft—this hybrid trend is here to stay. Our company is literally doing the same: cutting down permanent desks while investing in collaborative zones. Smart move honestly. 💼
AI integration in workplace ops is welcome, but 50.8% willingness seems low for 2025. We should be more aggressive. Also hope companies don't misuse AI for layoffs—should be about augmenting our workforce, not replacing it.
The 43% increase from pre-pandemic peak is remarkable. India's position as a strategic global hub is strengthening. Good to see Knight Frank highlighting the GCC trend—those 32.6 million sq ft are driving real value-add jobs in tech and analytics.
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