India’s office market scales new peak in 2025; rentals rise, vacancies tighten
- IBEF
- December 26, 2025
India’s office real estate market delivered a landmark performance in 2025, registering record Grade A leasing of 71.5 million square feet, reflecting a 6% year-on-year growth and underscoring strong occupier confidence. Leasing momentum remained robust across the top seven cities, with Bengaluru leading activity at 22.1 million square feet, reaffirming its position as the country’s largest commercial hub. The final quarter of the year emerged as a standout, clocking an all-time high of 20.6 million square feet of leasing, highlighting sustained demand from both domestic and global occupiers. According to industry estimates, total office leasing across major cities is expected to reach around 55.16 million square feet in 2025, marking the highest level ever and pointing to a resilient, structurally strong market heading into 2026.
Global Capability Centres (GCCs) played a pivotal role in driving this growth, accounting for a record 41% share of total absorption, up from 36% in the previous year. Drawn by India’s economic stability, skilled talent pool, and cost competitiveness, leading multinational corporations, particularly from the US, expanded their footprints across key markets. Sector-wise, IT and IT-enabled services continued to anchor demand, accounting for 27% of leasing. In comparison, the coworking segment strengthened its position with a 23% share, reflecting evolving workplace strategies and demand for flexible spaces. BFSI accounted for 18% of total leasing, supported by steady expansion across major cities. Additionally, consultancy, e-commerce, and allied services contributed to broader-based demand, reinforcing diversification in occupier profiles. With strong fundamentals, expanding GCC activity, and rising interest in flexible and hybrid workspaces, India’s office market is well-positioned for sustained growth, reinforcing its status as a preferred destination for global and domestic enterprises alike.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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