India’s office leasing market reached a record high in 2025, with gross office leasing in India hitting 86.4 million square feet. This surge reflected strong occupier demand and marked a historic milestone for office leasing in India. Compared to 2024, leasing volumes grew by 20% year-on-year and were 43% higher than pre-pandemic levels, highlighting India’s robust commercial real estate growth.
Bengaluru led office leasing in India, recording approximately 28 million square feet of leased office space, making it the top city for corporate occupiers. Other major Indian cities also showed strong leasing activity, including Hyderabad with 11.4 million square feet, Delhi-NCR at 11.3 million square feet, Pune with 10.8 million square feet, and Chennai at 10.1 million square feet. Mumbai recorded nearly 9.8 million square feet of office leasing in 2025, maintaining its position as a key market.
The demand for office space was broad-based, led by Global Capability Centres (GCCs) in technology, IT services, and research sectors. These centres contributed significantly to leasing volumes and reinforced India’s reputation as a preferred destination for corporate operations and innovation. Additionally, flexible workspace operators and IT companies continued to secure office space, reflecting a growing trend toward hybrid and scalable office solutions.
Despite the strong demand, office supply in India could not keep pace, resulting in rental growth in major cities. Limited availability of Grade A office space drove higher rents in Delhi-NCR, Hyderabad, and Bengaluru. Grade A spaces dominated leasing activity, accounting for over 90% of transactions, as occupiers increasingly prioritized quality infrastructure and long-term efficiency.
With sustained occupier demand, constrained supply, and a growing need for high-quality office infrastructure, India’s office leasing market is poised for continued growth in 2026. The record office leasing in India in 2025 underlines the resilience and potential of the commercial real estate sector, with Bengaluru continuing to lead as the most preferred corporate hub.
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