Momentum Remains Strong Across Top Cities as Global and Domestic Occupiers Expand
India’s Office Real Estate on a Historic Trajectory
India’s office leasing market is poised to achieve a record-breaking 90+ million square feet of gross leasing in 2025, according to Cushman & Wakefield’s latest Q2 India Office Market Report. This follows an already robust performance in 2024 when gross leasing touched ~89 million square feet.
“India’s office market continues to outperform global peers, underpinned by a solid economic outlook and long-term occupier confidence,” said Anshul Jain, Chief Executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield.
Quarterly and Half-Yearly Leasing Volumes
Gross leasing volume (GLV) for the first half of 2025 stood at ~42 million sq ft, reflecting consistent occupier demand. Notably, Q2 2025 clocked 21.4 MSF, a 5% quarter-on-quarter growth.
📊 Gross Leasing Volume by City (MSF)
| City | Q2 2024 | Q1 2025 | Q2 2025 | Q-o-Q Change | Y-o-Y Change |
|---|---|---|---|---|---|
| Bengaluru | 5.5 | 4.9 | 5.0 | +2% | -10% |
| Delhi NCR | 3.5 | 2.8 | 4.6 | +68% | +31% |
| Mumbai | 4.5 | 4.3 | 3.9 | -9% | -13% |
| Pune | 2.9 | 3.5 | 3.3 | -6% | +13% |
| Chennai | 1.7 | 2.0 | 2.2 | +10% | +25% |
| Hyderabad | 2.3 | 2.6 | 1.7 | -33% | -24% |
| Kolkata | 0.8 | 0.3 | 0.5 | +103% | -34% |
| Ahmedabad | 0.3 | 0.1 | 0.2 | +130% | -36% |
| PAN India | 21.6 | 20.3 | 21.4 | +5% | -1% |
Demand Drivers: Technology, GCCs, and Flex Spaces
Global Capability Centres (GCCs) remain a primary engine of growth, contributing 24% of quarterly leasing and hitting their highest-ever H1 leasing volume (11.4 MSF).
“The growth is being fuelled by a convergence of trends—expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms,” noted Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield.
Sectoral Contribution (H1 2025):
- IT-BPM: 32%
- BFSI: 16%
- Flex Spaces: 16%
- Engineering & Manufacturing: 13%
Net Absorption Reaches 27.8 Million Sq Ft in H1
Net absorption—a key indicator of fresh demand—stood at 13.5 MSF in Q2 2025, growing 19% year-on-year.
🏢 Net Absorption by City (MSF)
| City | Q2 2024 | Q1 2025 | Q2 2025 | Q-o-Q Change | Y-o-Y Change |
|---|---|---|---|---|---|
| Bengaluru | 2.5 | 2.5 | 3.5 | +41% | +40% |
| Delhi NCR | 1.5 | 3.9 | 1.4 | -65% | -6% |
| Mumbai | 1.7 | 2.9 | 2.6 | -9% | +51% |
| Pune | 0.4 | 2.1 | 2.2 | +8% | +426% |
| Chennai | 0.5 | 1.1 | 2.0 | +84% | +285% |
| Hyderabad | 1.9 | 1.5 | 1.3 | -16% | -31% |
| Kolkata | 0.8 | 0.4 | 0.4 | +5% | -49% |
| Ahmedabad | 2.0 | 0.1 | 0.1 | -8% | -97% |
| PAN India | 11.3 | 14.3 | 13.5 | -6% | +19% |
Tight Supply, Falling Vacancy Rates, Rising Rents
New completions reached 12.5 MSF in Q2 2025, a 53% increase year-on-year. However, this lagged behind net absorption, leading to a 230 basis points fall in vacancy during H1.
Pune emerged as the supply leader, delivering 8.0 MSF in H1—the highest in any half-year.
Rental trends show upward pressure in all core markets, led by Hyderabad and Mumbai, where rents rose 15–16% year-on-year.
📦 Quick Stats Box
- H1 2025 Gross Leasing: ~42 MSF
- Forecast 2025 Leasing: 90+ MSF (record high)
- Top Demand Drivers: IT-BPM, GCCs, Flex Spaces
- Vacancy: Tightening in Bengaluru, Pune, Mumbai, Chennai
- Rents: Rising across core micro-markets
Outlook: Sustained Momentum Into H2 2025
With pre-commitments rising to 10% of leasing activity, landlords are gaining pricing power. Cushman & Wakefield expects the second half to maintain strong activity as occupiers secure quality spaces ahead of further rental escalations.
“Occupiers looking for high-quality space need to act early, especially as pre-commitments are on the rise and rentals are climbing in prime markets,” advised Veera Babu.
Also Read: Why Commercial Real Estate Investors Are Betting On Office Spaces
