India’s office real estate sector has hit a historic milestone, clocking ~40 million sq. ft of net absorption between January–September 2025 — the highest ever for this period, according to JLL’s Real Estate Intelligence Service (REIS) data.
The sector continues to defy global headwinds, posting robust growth across major cities, driven by Global Capability Centres (GCCs), flex operators, and technology occupiers. Net absorption rose 24.8% year-on-year, with Q3 2025 alone witnessing a 40% YoY jump to 15.76 million sq. ft.
🏢 Secular Growth Across Key Markets
- Net absorption rose across all major Indian cities except Mumbai and Kolkata, marking a broad-based expansion.
- Bengaluru retained its top spot with a 26.5% share of net absorption between January–September 2025.
- Delhi NCR followed at 24.8%, driven by a surge in Q3 leasing activity.
- Hyderabad came in third with 13.7%, indicating its growing importance as a tech hub.
This period also marked the highest-ever net absorption for Delhi NCR, Bengaluru, Pune, and Chennai during the first nine months of any year — underscoring the strong headcount growth in India’s talent hubs.
📈 Historic Leasing Activity Reflects Market Confidence
India’s gross leasing activity for the first nine months of 2025 stood at 56.49 million sq. ft, the highest ever recorded, reflecting 5.7% annual growth.
“India’s office market continues to thrive, cementing the country’s position as the ‘Office to the World.’ With GCCs leading this charge, these exceptional figures reflect the unwavering conviction global corporates have that India offers genuine structural tailwinds to their business strategies,” said Radha Dhir, CEO and Country Head, India, JLL.
“Given our strong deal pipeline and current trajectory, leasing volumes could touch 80 million sq. ft or higher by year-end,” she added.
🏙️ Delhi NCR & Bengaluru Dominate Q3
- Both Delhi NCR and Bengaluru captured 24.6% each of total net absorption in Q3 (July–September).
- Pune emerged as a surprise growth story, with net absorption up 148% QoQ.
- Chennai and Hyderabad maintained strong double-digit growth, while Mumbai rebounded with a 67.5% increase QoQ despite being down year-on-year.
Delhi NCR also led gross leasing activity in Q3 with 27.2% share, followed by Bengaluru (17.8%) and Hyderabad (17.3%).
🧠 What’s Driving This Growth?
Three structural trends are reshaping India’s office market:
- GCCs dominate with 20 million sq. ft leased in 9M 2025 (up 12.8% YoY), commanding a 38.5% market share.
- Flex operators are surging, hitting a record 23.8% share in Q3 leasing.
- Tech occupiers (domestic and global) have already leased 92% of last year’s total in just nine months, driven by AI transformation strategies.
“India isn’t just absorbing global volatility; it’s becoming the backbone of next-generation corporate operations,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
“The fundamentals point beyond recovery—we’re witnessing structural market evolution,” he added.
📊 Sectoral Trends at a Glance
- IT/ITeS: 28% share of leasing (Jan–Sep 2025)
- Flex space: 19% share
- BFSI & Manufacturing: 15–16% combined share
Vacancy rates declined 40 bps QoQ to 15.7%, marking the lowest level in 17 quarters. Tight, single-digit vacancies were recorded across core markets in Bengaluru, Mumbai, Hyderabad, and Delhi NCR — pointing to space constraints and upcoming portfolio expansions.
🌐 India’s Strategic Edge
- GCC demand remains strong, accounting for ~50% of active requirements.
- Tech outsourcing is witnessing renewed momentum around AI and R&D.
- BFSI and manufacturing sectors are expanding offshore operations, supported by strategic policy initiatives.
With a strong pipeline, tight vacancies, and robust leasing volumes, India is emerging as the epicenter of global corporate expansion.
