India’s Office Market Hits 55 Mn Sq Ft Leasing in 2025 as GCC Demand Powers Growth
India’s office real estate market delivered a powerful comeback in 2025. The top seven cities including NCR together leased over 55 million square feet of office space, marking a 10% year-on-year rise. This growth came despite IT sector layoffs and global trade tensions. Strong corporate confidence and steady expansion by global firms kept demand resilient across key markets.
India’s Office Leasing Momentum Surges in 2025
India’s office real estate market delivered a strong performance in 2025. Global uncertainty remained high. IT layoffs created noise. Yet, demand stayed firm.
The top seven cities together leased nearly 55.16 million square feet of office space. This marked a 10% year-on-year increase over 2024. Corporates continued to expand. Global firms continued to invest. India’s long-term story stayed intact.
Bengaluru Holds the Lead Despite a Mild Dip
Bengaluru once again emerged as India’s largest office market. The city recorded 14.15 million sq ft of net leasing in 2025.
However, growth slowed slightly. Leasing dropped 5% compared to the previous year. Even then, Bengaluru stayed far ahead of other markets. Its tech ecosystem, deep talent base, and startup culture continued to attract occupiers.
Meanwhile, Kolkata also witnessed a marginal decline. Leasing slipped 3% to nearly 1.15 million sq ft, making it the smallest contributor among the top seven cities.
Pune Takes Centre Stage with Record Growth
Pune delivered the most impressive performance in 2025.
The city recorded the highest annual growth among all major markets. Net absorption jumped 63%, rising from 4.8 million sq ft in 2024 to nearly 7.8 million sq ft in 2025.
This surge highlighted Pune’s growing appeal. Competitive rentals, improved infrastructure, and access to skilled professionals played a major role.
MMR, NCR, Chennai, and Hyderabad Stay on a Growth Path
Other major cities also posted healthy numbers.
- Mumbai Metropolitan Region (MMR) grew 15% to 8.23 million sq ft
- Delhi NCR leased 10.12 million sq ft, marking 7% growth
- Hyderabad expanded 9% to 8.11 million sq ft
- Chennai rose 12%, touching 5.6 million sq ft
Together, these cities strengthened India’s position as a preferred destination for global office expansion.
GCCs Emerge as the Biggest Growth Engine
Global Capability Centres (GCCs) drove office demand in 2025.
GCCs accounted for a record 41% share of total leasing, up from 36% in 2024. Global companies continued to scale operations in India. They trusted the country’s economic stability, cost efficiency, and skilled workforce.
This trend clearly reshaped the office leasing landscape across major cities.
Office Supply Rises, but Unevenly Across Cities
Developers responded to rising demand with new supply additions.
New office completions across the top seven cities increased 8% year-on-year, reaching 51.83 million sq ft in 2025.
- Bengaluru added around 13.5 million sq ft
- Pune witnessed a massive 103% jump, crossing 10.6 million sq ft
- Chennai saw supply rise 72% to 3.9 million sq ft
- NCR added 8.65 million sq ft, marking 46% growth
Interestingly, Kolkata recorded 317% growth, though total supply remained limited at 0.13 million sq ft.
In contrast, MMR and Hyderabad saw supply decline by 35% and 39%, reflecting tighter development pipelines.
Vacancies Ease as Rentals Climb Higher
Demand outpaced supply in several markets. As a result, vacancy levels improved.
Overall vacancy across the top seven cities declined to 16.10% in 2025, down from 16.50% a year earlier.
- MMR recorded 14.70% vacancy
- Hyderabad remained highest at 26.30%
- NCR followed at 21.70%
At the same time, average office rentals rose 6%, reaching nearly ₹92 per sq ft per month.
Bengaluru led the rise with 9% growth, touching ₹102 per sq ft. Pune and NCR followed with 6% increases.
Occupier Demand Becomes More Diverse
The IT/ITeS sector continued to lead with a 27% share of total leasing.
However, coworking operators gained momentum. Their share increased to 23%. BFSI firms accounted for 18%, while consulting and e-commerce also expanded steadily.
This diversification added long-term stability to the market.
Industry Insight
Sanjeev Singh, Managing Director, SKJ Landbase, shared his outlook:
“The strong office leasing numbers in 2025 reflect global confidence in India’s commercial real estate. GCC expansion, rising rentals, and balanced supply point toward sustained growth across key markets.”
Outlook for the Coming Year
India’s office market enters the next phase with confidence. GCC-led demand, improving vacancies, and rental growth create a strong foundation. While global challenges may continue, India’s fundamentals remain compelling.
The growth story looks steady and far from over.
