Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
India's office real estate market recorded its strongest performance in 2025, led by Bengaluru, which emerged as the country's largest and most active office hub. Gross leasing across eight major cities touched an all-time high of 86.4 million square feet, reflecting sustained occupier confidence despite global uncertainties. Bengaluru alone accounted for 28.7 million square feet of leasing, marking its highest-ever annual absorption, largely driven by strong demand from global firms setting up Global Capability Centres. Other southern cities such as Hyderabad, Pune and Chennai also reported healthy growth, while eastern markets like Kolkata posted a sharp rebound. In contrast, select northern and western markets saw moderation in activity. Overall, the leasing trends indicate a structural shift towards globally aligned demand patterns, with technology-led occupiers, GCCs and flexible workspace operators playing a pivotal role.
India's office real estate market achieved a new milestone in 2025, with gross leasing across eight major cities rising 20 per cent year-on-year to a record 86.4 million square feet. The performance underscores growing confidence among both domestic and global occupiers, supported by India's position as a long-term business and talent destination. Advertisement
Bengaluru continued to dominate as the country's largest office market, registering its highest-ever annual gross leasing of 28.7 million square feet, a sharp 59 per cent increase over the previous year. The surge was primarily driven by multinational corporations expanding their Global Capability Centres, reinforcing the city's reputation as the preferred hub for technology, innovation and back-office operations.
Other southern markets also reported robust activity. Hyderabad recorded a 10 per cent increase in office leasing to 11.4 million square feet, while Pune saw a strong 36 per cent rise to 10.8 million square feet. Chennai followed with a 24 per cent increase, reaching 10.1 million square feet, supported by steady demand from technology firms and manufacturing-linked services.
In eastern India, Kolkata emerged as a standout performer, with office leasing surging 69 per cent to 2.3 million square feet, marking its best performance in over a decade. The sharp growth reflects renewed occupier interest and improving market fundamentals.
However, not all markets mirrored this growth. Delhi-NCR witnessed an 11 per cent decline in office leasing to 11.3 million square feet, while Mumbai recorded a modest 5 per cent drop at 9.8 million square feet. Ahmedabad also saw a significant contraction, with leasing volumes falling 34 per cent to 2 million square feet.
From a sectoral perspective, Global Capability Centres accounted for 38 per cent of total leasing, highlighting their growing influence on office demand. Third-party IT services and flexible workspace operators also recorded their highest-ever absorption, pointing to evolving occupier strategies focused on quality assets, scalability and long-term consolidation. Overall, the 2025 performance signals a structural shift in India's office market towards globally integrated and future-ready demand.
Source - PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
