India’s Office Market Set for Record 90+ Million Square Feet Leasing in 2025

SquareFeatIndia — Thu, 10 Jul 2025 08:15:49 +0000

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

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