India Office Leasing 2025 Hits Record 55 Mn Sq. Ft. Across Top 7 Cities: ANAROCK

Mumbai: India office leasing 2025 reached a historic peak as net office absorption across the country’s top seven cities touched approximately 55.16 million sq. ft., marking a 10% year-on-year increase from around 49.95 million sq. ft. in 2024, according to the latest data from ANAROCK Research & Advisory.

Despite global headwinds such as IT layoffs and tariff-related uncertainties, the Indian office market continued its strong momentum in 2025, supported by sustained occupier demand, economic resilience, and growing interest from Global Capability Centres (GCCs).

India Office Leasing 2025 Driven by GCC Demand and Sectoral Diversification

A key highlight of India office leasing 2025 was the record 41% share of GCCs in gross office absorption, up sharply from 36% in 2024, underscoring India’s growing importance as a global operations hub for multinational corporations.

While Bengaluru retained its position as the largest office market with 14.15 million sq. ft. of net leasing in 2025, it witnessed a 5% annual decline compared to 14.87 million sq. ft. in 2024.

In contrast, Pune emerged as the fastest-growing market, recording a 63% year-on-year jump in net absorption from 4.8 million sq. ft. to 7.8 million sq. ft.

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Other key markets posted healthy growth, with MMR, Chennai, Hyderabad, and NCR registering year-on-year increases of 15%, 12%, 9%, and 7%, respectively. Kolkata, however, saw a marginal 3% decline in net office absorption during the year.

Source: ANAROCK Research & Advisory

New Supply Expansion Supports India Office Leasing 2025 Growth

New office completions across the top seven cities rose 8% year-on-year, increasing from 48.11 million sq. ft. in 2024 to approximately 51.83 million sq. ft. in 2025. Bengaluru led new supply additions with 13.5 million sq. ft., reflecting an 8% annual increase.

Pune recorded a significant 103% jump in new office supply, while Chennai and NCR also saw strong growth of 72% and 46%, respectively. Kolkata posted the highest percentage growth at 317%, though volumes remained modest at 0.13 million sq. ft.

In contrast, MMR and Hyderabad experienced a decline in new supply, with drops of 35% and 39%, respectively.

Vacancy Levels and Rentals in India Office Leasing 2025

Office vacancy rates across the top seven cities eased marginally to 16.10% in 2025, down from 16.50% in 2024, indicating improving market fundamentals.

Average monthly office rentals rose 6% year-on-year, increasing from ₹87 per sq. ft. in 2024 to ₹92 per sq. ft. in 2025. Bengaluru recorded the highest rental growth at 9%, reflecting sustained occupier demand despite a marginal dip in net leasing.

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Sector-Wise Demand Trends in India Office Leasing 2025

The IT/ITeS sector continued to dominate demand with a 27% share of total office leasing in 2025. Coworking operators followed closely with a 23% share, registering a 2% increase over the previous year, while BFSI accounted for 18% of overall leasing activity.

Other sectors such as BFSI, consultancy services, and e-commerce recorded marginal gains in their leasing share, even as IT/ITeS, manufacturing, and miscellaneous sectors saw slight declines.

Industry Perspective

“India’s office real estate market boomed in 2025, with net absorption and new completions both surging on the back of robust economic growth,” said Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group.

“GCCs are leading the charge, capturing a record 41% share of gross absorption, driven by India’s economic stability and cost advantages.”

Source: ANAROCK Research & Advisory