Corporate real estate (CRE) 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.
