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Bengaluru Remains Office Hub of India With Highest Space Leasing

The commercial office real estate is on a roll across the top 7 cities with a 40% yearly rise in net office absorption.

BY Realty+
Published - Saturday, 05 Jul, 2025
Bengaluru Remains Office Hub of India With Highest Space Leasing

Amid the ongoing policy chaos in the US, India is seen as a haven of continuing and dependable long-term stability and growth. Top 7 cities record net office leasing of approx. 26.8 Mn sq. ft. against nearly 19.08 Mn sq. ft. back in H1 2024

Among the cities, Bengaluru saw the highest net leasing of approx. 6.55 Mn sq. ft. in the period against 4 Mn sq. ft. in the corresponding period last yr, thus recording a 64% yearly jump

Meanwhile, the top 7 cities recorded 25% increase in new office completions in H1 2025 – from 19.65 Mn sq. ft. in H1 2024 to nearly 24.51 Mn sq. ft. in first half this year. Again, Bengaluru saw the highest new office supply addition in the first half this year (of approx. 6.91 Mn sq. ft.) as against 5.5 Mn. sq. ft. last Yr, thus seeing 26% yearly rise

The commercial office real estate is on a roll across the top 7 cities, as latest ANAROCK Research data reveals a 40% yearly rise in net office absorption – from approx. 19.08 Mn sq. ft. in H1 2024 against approx. 26.8 Mn sq. ft. in H1 2025.

As expected, Bengaluru led with approx. 6.55 Mn sq. ft. office space leased in the first half of this year, against approx. 4 Mn sq. ft. at the end of H1 2024 - a 64% yearly increase.

In terms of annual net absorption growth, Pune recorded the highest with 188% - from approx. 1.32 Mn sq. ft. in H1 2024 to approx. 3.8 Mn sq. ft. in H1 2025

Kolkata was the only city to see a drop (of 51%) in net office absorption – from approx. 0.93 Mn sq. ft. in H1 2024 to approx. 0.45 Mn sq. ft. in H1 2025

In terms of new office completions, the top 7 cities recorded a 25% increase in the period – from approx. 19.65 Mn sq. ft. in H1 2024 to approx. 24.51 Mn sq. ft. in H1 2025. Again, Bengaluru superseded all other top cities with a total new office supply of approx. 6.91 Mn sq. ft. added in first half of 2025, against 5.5 Mn sq. ft. in H1 2024 - a 26% yearly growth.

Office space vacancies across the top 7 cities collectively dropped to 16.30% in H1 2025 - a marginal improvement over the 16.70% in H1 2024. Despite reduced new office supply in MMR and Hyderabad in the first half, office vacancies increased in both cities – from 13% in H1 2024 to 15.10% in H1 2025 in MMR, and from 25.50% to 26.60% in Hyderabad. Currently, Hyderabad has the highest vacancy rates among the top 7 cities.

Average monthly office rentals increased by a marginal 5% - from INR 84/sq. ft. in H1 2024 to INR 88/sq. ft. in H1 2025. Chennai recorded the highest 6% yearly rise in monthly office rentals – from INR 72/sq. ft. in H1 2024 to INR 76/sq. ft. in H1 2025. Both Bengaluru and NCR recorded 5% yearly increases.

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