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India's Office Market Hits Record High in 2025
10 Jan
Summary
- India's office leasing reached an all-time high of 86.4 mn sq ft in 2025.
- Bengaluru led with 28 mn sq ft, its best performance ever.
- Global Capability Centres drove demand, securing 38% of total absorption.
India's office real estate market has posted its strongest performance on record in 2025. Annual gross leasing reached an unprecedented all-time high of 86.4 million square feet, marking a significant 20% increase year-on-year and a 43% rise compared to pre-pandemic levels in 2019.
Bengaluru led the market with a historic 28 million sq ft of gross leasing. Other major cities like Hyderabad, NCR, Pune, and Chennai each surpassed 10 million sq ft. Global Capability Centres (GCCs) were the main demand drivers, accounting for 38% of total absorption. Flexible workspace operators and IT services also saw their highest leasing volumes.
Despite robust demand, new office supply increased by only 9% to 54.8 million sq ft, leading to firm rental growth across major markets. Grade A office space dominated preferences, with companies prioritizing modern infrastructure and efficiency. With strong demand momentum and limited future supply, the Indian office market is expected to remain a global performer.
