India’s top seven cities witnessed robust office leasing activity in 2025, with nearly 55.16 million sq ft (msf) leased, marking a 10% year-on-year increase from 49.95 msf in 2024, according to a report by ANAROCK. Despite challenges such as IT sector layoffs and global trade tensions, demand remained strong, particularly from Global Capability Centres (GCCs).
City-Wise Leasing Trends
- Bengaluru: Remained the largest office market with 14.15 msf leased, though slightly down 5% from 2024.
- Pune: Reported the highest annual growth with net absorption jumping 63% from 4.8 msf to 7.8 msf.
- MMR (Mumbai Metropolitan Region): Up 15% to 8.23 msf.
- Chennai: Grew 12% to 5.6 msf.
- Hyderabad: Up 9% to 8.11 msf.
- NCR (Delhi-NCR): Up 7% to 10.12 msf.
- Kolkata: Slight decline of 3% to 1.15 msf.
GCCs Driving Demand
Global Capability Centres emerged as a key growth driver, contributing 41% of gross leasing in 2025, up from 36% in 2024. Companies are attracted to India due to its economic strength, cost advantages, and stability, fueling the expansion of GCCs across major cities.
“India’s office real estate market boomed in 2025, with net absorption and new completions surging thanks to the country’s robust economic growth,” said Peush Jain, MD – Commercial Leasing and Advisory, ANAROCK Group.
Office Supply Trends
- New completions across the top seven cities rose 8% year-on-year to 51.83 msf.
- Bengaluru led with 13.5 msf added.
- Pune saw a 103% jump to 10.6 msf, Chennai 72% to 3.9 msf, and NCR 46% to 8.65 msf.
- Kolkata recorded the fastest growth (317%) but remained lowest in absolute terms (0.13 msf).
- MMR and Hyderabad saw sharp declines in new completions, down 35% and 39% respectively.
Vacancy and Rentals
- Overall vacancy in the top seven cities eased to 16.10% from 16.50% in 2024.
- MMR: 14.70% vacancy.
- Hyderabad: 26.30% (highest).
- NCR: 21.70%.
- Average monthly rentals rose 6% to ₹92 per sq. ft., with Bengaluru seeing the steepest increase (9% to ₹102 per sq. ft.).
Conclusion
India’s office real estate market demonstrated resilience and growth in 2025, with GCCs playing a central role in driving leasing demand. As global firms continue to expand their operations in India, the top cities remain hotspots for office space absorption, supporting both economic growth and urban development.
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