The momentum was particularly strong in the final quarter of the year, with Q4 2025 alone clocking a record-breaking 26.8 million sq ft, the highest quarterly leasing ever recorded in the country.

Flex Spaces and Tech Drive Office Demand

For the second consecutive quarter, flexible workspace operators emerged as the largest occupier segment, accounting for 26.6% of total leasing in Q4 2025—their highest-ever quarterly share.

This was followed by:

• IT/ITeS (21.2%)
• Manufacturing/Industrial (16.1%)
• BFSI (13.7%)

For the full year 2025, technology firms remained the largest occupiers with a 25.8% share, while flex operators followed closely at 21.5%. Manufacturing and BFSI contributed nearly equal shares at 15.4% and 15.2%, respectively.

Bengaluru Leads, But Growth Is Broad-Based

India’s top office markets—Bengaluru, Hyderabad, Mumbai, and Pune—all recorded their best-ever annual leasing volumes in 2025, highlighting the depth and resilience of demand.

• Bengaluru retained its leadership position with a 29% share of total leasing
• Delhi NCR followed with 20.9%
• Mumbai and Hyderabad each accounted for 14%

This broad-based performance also signals demand dispersion, as occupiers increasingly diversify beyond traditional core markets.

GCCs Strengthen India’s Position as ‘Office to the World’

A key driver of this historic performance was the surge in Global Capability Centers (GCCs).
In 2025, GCCs accounted for a commanding 37.7% of total leasing, absorbing a record 31 million sq ft—the highest ever for this segment.

“The convergence of record GCC expansion, flex space growth, and strong deal pipelines positions India’s office market to potentially cross 100 million sq ft of leasing within the next two years,” said Rahul Arora, Head – Office Leasing & Retail Services, JLL India.

Domestic occupier activity was also robust, driven primarily by Indian flex operators, who leased nearly 18 million sq ft, their best performance to date.

Net Absorption Touches an All-Time High

India’s office market didn’t just lease more—it also occupied more space than ever before.

• Net absorption in 2025 reached a record 57.0 million sq ft, up 14.1% year-on-year
• Q4 2025 alone contributed 17.1 million sq ft, the highest quarterly absorption of the year

Bengaluru led net absorption with a 37.2% share in Q4, followed by Hyderabad (15.7%) and Delhi NCR (14.0%).

“With nearly 200 new GCCs entering India over the past two years and GCCs now accounting for almost 50% of active space demand, the growth runway remains strong,” said Dr Samantak Das, Chief Economist, JLL India.

Vacancy Falls to a Five-Year Low

Strong absorption levels have pushed Pan-India office vacancy down to 15.2%, the lowest in five years, declining by 50 basis points quarter-on-quarter.

• Mumbai and Delhi NCR are witnessing their lowest vacancy levels in nearly 15 years
• Bengaluru’s vacancy is at a four-year low
• Core business districts across cities are seeing tight, single-digit vacancy levels

This tightening is creating space constraints for large occupiers, reinforcing expectations of further expansion and pre-commitments.

Outlook: 2026 Poised for Another Strong Year

JLL expects India’s office market to maintain its growth momentum in 2026, supported by:

• Continued GCC expansion
• Strong tech and R&D ecosystems
• Manufacturing push driven by policy initiatives
• A deep and skilled talent pool

With sustained demand and limited vacancies, India is now firmly entrenched as a global center for innovation, operations, and corporate expansion, setting the stage for potentially crossing the 100 million sq ft leasing milestone in the near future.

Also Read: India Rising: Managed Office Spaces Gain Ground Across Tier I, II and III Cities

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