India’s Office Space Market Booms with 57 Million Sq. Ft Absorption in 2025
India’s commercial real estate sector is on a roll once again! From January to September 2025, the country recorded an impressive 56.8 million sq. ft. of office space absorption across its top six cities, according to Savills India. With strong leasing momentum and robust new supply, the market is all set to break the previous record of 75 million sq. ft. by the end of the year.
The Big Picture: India’s Office Demand Stays Strong
Despite global economic uncertainties, India’s office market continues to show remarkable resilience and structural growth. Demand from sectors like IT-BPM, Global Capability Centres (GCCs), BFSI, and flexible workspace operators has powered this momentum.
New office supply also climbed by 9.6% year-on-year, reaching 35.4 million sq. ft., while vacancy rates eased to 14%. This clearly signals a healthy balance of supply and demand, as both domestic and international occupiers expand their footprints in major Indian cities.
City-Wise Highlights: Delhi-NCR Leads Q3 Leasing, Bengaluru Stays on Top
During Q3 2025, India clocked 17.9 million sq. ft. of office absorption. Although this marked a 24% year-on-year decline mainly due to a robust first half the market fundamentals remain strong.
- Delhi-NCR topped quarterly leasing charts with 5 million sq. ft., boosted by a surge in IT-BPM and co-working demand.
- Bengaluru, however, retained its year-to-date leadership with 14.6 million sq. ft., fueled by tech giants and flexible workspace operators.
- Pune followed closely with 2.8 million sq. ft., while Mumbai recorded 9.1 million sq. ft. on the back of BFSI expansion.
- Hyderabad added 7.5 million sq. ft., driven by mid-sized deals, and both Pune and Chennai posted 6.9 million sq. ft. each in absorption.
This widespread activity showcases how corporate India continues to bet big on growth, innovation, and collaborative work environments.
Supply Keeps Up: Completions Rise 10% YoY
Fresh office completions hit 35.4 million sq. ft. in 2025 so far a 10% jump over last year. Interestingly, Delhi-NCR and Bengaluru together contributed 59% of all new supply, underlining their dominance as corporate powerhouses.
City-wise:
- Bengaluru led with 11.1 million sq. ft. of new supply.
- Pune followed with 8.8 million sq. ft.
- Delhi-NCR added 5.7 million sq. ft.
- Chennai and Hyderabad contributed 4 million and 3.8 million sq. ft., respectively.
- Mumbai rounded off with 1.9 million sq. ft.
Moreover, Bengaluru now boasts India’s largest Grade A office stock at 246.6 million sq. ft., followed by Delhi-NCR and Hyderabad.
Large Deals & GCCs Continue to Drive Momentum
One of the most encouraging signs this year is the rise in large transactions. Deals exceeding 100,000 sq. ft. accounted for 42% of total Q3 leasing, proving that occupier confidence remains high.
Global Capability Centres (GCCs) emerged as a key growth engine, taking up 30% of total leasing—about 5.9 million sq. ft. mainly across Bengaluru, Pune, and Hyderabad.
Sector-wise, technology firms led with 33% of total leasing, followed by flexible workspaces (15%) and BFSI (13%). This blend of industries signals a balanced ecosystem, with each contributing to steady, sustainable growth in India’s office space market.
Expert Insights: Sanjeev Singh, MD, SKJ Landbase
Commenting on the report, Sanjeev Singh, Managing Director of SKJ Landbase, said:
“India’s office market has transitioned from short-term leasing cycles to a phase of strategic, long-term growth. The surge in GCCs and IT-led occupancies highlights confidence in India’s talent and cost advantage. NCR, in particular, is witnessing renewed interest from corporates seeking world-class infrastructure and better connectivity. With continuous policy support and infrastructure upgrades, 2025 could be a record-breaking year for the Indian office real estate sector.”
His perspective reflects how India is maturing into a global hub for business operations, blending affordability with innovation.
What Lies Ahead for 2025 and Beyond
Looking ahead, the Savills India report predicts that absorption could easily touch 75 million sq. ft. by year-end, setting a new benchmark. The combination of flexible office demand, tech sector expansion, and large-scale GCC entries will continue to fuel this positive trajectory.
Additionally, the easing vacancy rate and strong developer pipeline suggest that India’s commercial property landscape will stay resilient and perhaps even outperform expectations—amid global economic challenges.
Final Thoughts
The Indian office space story is one of resilience, adaptability, and growth. From tech-driven expansions in Bengaluru to premium workspace absorption in Delhi-NCR, the country’s top markets are evolving to match global standards.
With the right mix of corporate demand, infrastructure push, and investment confidence, India’s office real estate market is well on its way to creating new milestones in 2025 cementing its position as a powerhouse in the global commercial landscape.
