India’s Office Market To Cross 75Mn Sq. Ft. In 2025

India’s office real estate sector continues its upward momentum in 2025, with 56.8 million sq. ft. of gross absorption across the top six cities, according to Savills India. Driving this growth are Global Capability Centres (GCCs), IT-BPM companies, BFSI players, and flexible workspace operators, reflecting sustained confidence in India’s commercial property market.

GCCs alone contributed more than 30% of total leasing, led by Bengaluru, Pune, and Hyderabad. Meanwhile, new supply rose 9.6% year-on-year to 35.4 million sq. ft., helping to meet demand while vacancy rates eased slightly to 14%. With this trajectory, the market is on course to cross 75 million sq. ft. by the end of 2025, surpassing the previous annual peak.

“India’s office real estate sector has shown remarkable resilience, achieving 56.8 million sq. ft. of gross absorption year-to-date despite global economic uncertainties. The market is undergoing structural growth, fueled by demand from IT-BPM, GCCs, BFSI, and flexible workspace providers,” says Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India. He adds that international firms are showing increasing interest in Grade A office spaces, which bodes well for sustained absorption.

Q3 2025 Highlights

During the third quarter, India recorded 17.9 million sq. ft. of office space absorption, a 24% dip compared with the same period last year. Delhi-NCR led the quarter with 5 million sq. ft., followed by Bengaluru with 3.9 million sq. ft., and Pune at 2.8 million sq. ft.

Key sectors driving demand included technology (33%), flexible workspaces (15%), and BFSI (13%). Large transactions of 100,000 sq. ft. or more made up 42% of total leasing. Together, Delhi-NCR and Bengaluru accounted for 59% of all new completions in Q3, contributing 6 million sq. ft.

Global Capability Centres continued to dominate leasing, accounting for over 30% of total absorption, particularly in Bengaluru, Pune, and Hyderabad, where 4.8 million sq. ft. of office space was taken up by GCCs.

City-Wise Trends

Bengaluru remains India’s top office leasing market, recording 14.6 million sq. ft. of gross absorption year-to-date. The Outer Ring Road (ORR) and Peripheral East micro-markets contributed 40% and 21% of take-up respectively. Technology and flexible workspace companies accounted for the majority of demand in Q3, driving 52% and 22% of leasing activity.

Delhi-NCR emerged as the top performer for Q3 with 5 million sq. ft. of gross absorption. This included 3.5 million sq. ft. of new take-up and 1.5 million sq. ft. of pre-committed space. Year-to-date leasing in the region totaled 11.8 million sq. ft., second only to Bengaluru, with IT-BPM firms (32%) and flexible workspaces (15%) leading the charge.

Mumbai ranked third, with 9.1 million sq. ft. absorbed so far this year. Q3 contributed 2.4 million sq. ft., with the BFSI sector continuing to dominate demand.

Hyderabad recorded 7.5 million sq. ft. of year-to-date absorption, placing it fourth nationally. Q3 activity was dominated by mid-sized deals of 25,001–99,000 sq. ft., accounting for 50% of leasing. IT-BPM led demand at 33%, followed by Research & Consulting (19%) and Healthcare & Pharma (16%).

Pune saw a 38% year-on-year rise in Q3 gross absorption, reaching 6.9 million sq. ft. year-to-date, driven primarily by BFSI, IT-BPM, and flexible workspace uptake.

Chennai also reported 6.9 million sq. ft. of YTD absorption, up 4% year-on-year, with IT-BPM (31%) and Engineering & Manufacturing (25%) as the top leasing contributors during Q3.

Looking Ahead

India’s office real estate market is on a strong growth path, supported by consistent demand from technology, financial services, GCCs, and flexible workspace providers. Cities like Bengaluru and Delhi-NCR continue to lead in both volume and value, while emerging hubs such as Pune, Hyderabad, and Chennai are seeing robust activity.

With new supply expanding and vacancy rates gradually easing, the market is expected to surpass 75 million sq. ft. of gross absorption by the end of the year, setting a new record for India’s office leasing sector. Driven by structural growth and evolving business requirements, India’s commercial property landscape remains a key destination for domestic and international occupiers alike.