GCCs, coworking operators and BFSI drive demand despite IT headwinds
India’s office real estate market delivered a standout performance in 2025, with net office leasing across the top seven cities hitting an all-time high of nearly 55.16 million sq ft, according to ANAROCK Research & Advisory. This marks a 10% year-on-year growth compared to approximately 49.95 million sq ft leased in 2024, underlining the sector’s resilience despite global IT layoffs and geopolitical uncertainties.
The top seven cities tracked include Bengaluru, Mumbai Metropolitan Region (MMR), NCR, Chennai, Hyderabad, Pune and Kolkata.
GCCs Emerge as the Biggest Growth Engine
A key highlight of 2025 was the growing dominance of Global Capability Centres (GCCs), which accounted for a record 41% share of gross office leasing, up sharply from 36% in 2024. Large US and global corporates continued to expand their India operations, attracted by cost efficiencies, talent availability and economic stability.
Commenting on the trend, Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group, said that GCC-led expansion was a defining feature of the year.
“India’s office real estate market veritably boomed in 2025, with net absorption and new completions both surging thanks to the country’s robust economic growth. GCCs are leading the charge, capturing a record 41% share of gross absorption,” he noted.
City-wise Leasing: Pune Steals the Spotlight
While Bengaluru remained the largest office market in absolute terms with 14.15 million sq ft of net absorption in 2025, it recorded a 5% decline compared to 2024 due to its high base.
In contrast, Pune emerged as the fastest-growing market, registering a 63% jump in net office leasing—from 4.8 million sq ft in 2024 to 7.8 million sq ft in 2025.
Other cities also posted healthy growth:
- MMR: up 15% to 8.23 million sq ft
- Chennai: up 12% to 5.6 million sq ft
- Hyderabad: up 9% to 8.11 million sq ft
- NCR: up 7% to 10.12 million sq ft
Kolkata, along with Bengaluru, saw a marginal dip of 3% in leasing volumes.
Office Supply Expands, Led by Bengaluru and Pune
New office completions across the top seven cities rose 8% year-on-year, touching 51.83 million sq ft in 2025.
- Bengaluru led with 13.5 million sq ft of new supply
- Pune saw a massive 103% jump, adding over 10.6 million sq ft
- NCR and Chennai also posted strong supply growth of 46% and 72%, respectively
However, MMR and Hyderabad bucked the trend, witnessing supply declines of 35% and nearly 30%, respectively—helping stabilise vacancy levels in these markets.
Vacancy Levels Improve Marginally
Office vacancy across the top seven cities declined slightly to 16.10% in 2025, from 16.50% a year earlier.
- MMR vacancies fell to 14.7%
- Hyderabad, despite improvement, continued to have the highest vacancy at 26.3%
- NCR followed with a vacancy rate of 21.7%
Rentals Rise as Demand Remains Strong
Average monthly office rentals increased 6% year-on-year, rising from ₹87 per sq ft in 2024 to ₹92 per sq ft in 2025.
Bengaluru led rental growth with a 9% jump, crossing ₹100 per sq ft, while Pune and NCR recorded 6% increases. Even traditionally stable markets like Kolkata and Hyderabad saw modest rental appreciation, reflecting tightening supply-demand dynamics.
IT, Coworking and BFSI Lead Sectoral Demand
Sector-wise, IT/ITeS remained the largest occupier with a 27% share of total leasing.
It was followed by:
- Coworking operators: 23%
- BFSI sector: 18%
Interestingly, coworking demand rose further in 2025, highlighting how flexible workspaces are becoming a core part of corporate real estate strategies.
Outlook: Momentum Likely to Continue
Despite short-term global uncertainties, India’s office market fundamentals remain strong. Sustained GCC expansion, steady BFSI demand, growing coworking adoption and controlled supply additions are expected to support healthy absorption levels and rental growth in the coming years.
Also Read: Net Office Leasing in India to Cross 50 Million sq ft in FY26
