India’s office real estate sector closed 2025 on its strongest footing ever, underscoring the country’s growing stature as a global business and talent hub. Net absorption across the top eight cities touched a record 61.4 million square feet (MSF), marking a robust 25% year-on-year increase, according to Cushman & Wakefield’s Office Q4 MarketBeat report. The performance reflects sustained occupier confidence and the market’s ability to scale even as workplace strategies continue to evolve.
Net absorption, a key indicator of demand that measures the net change in occupied office space, remained firmly positive throughout the year, supported by healthy leasing activity and strong supply additions.
Bengaluru and Delhi NCR lead absorption
At a city level, Bengaluru emerged as the largest contributor with net absorption of 14.4 MSF, accounting for 23% of the national total. Delhi NCR followed closely with 10.9 MSF, contributing 18%, driven by increased leasing activity across core business districts.
Mumbai (9.6 MSF), Hyderabad (9.1 MSF), Pune (8.2 MSF) and Chennai (7.0 MSF) also delivered strong absorption, while Kolkata (1.4 MSF) and Ahmedabad (0.8 MSF) rounded out the list. Notably, Chennai and Delhi NCR recorded the sharpest year-on-year growth at 187% and 82%, respectively, highlighting strengthening fundamentals and a rising ability to absorb expanding office demand.
Leasing volumes remain at historic highs
The record absorption was underpinned by robust leasing activity across markets. Gross Leasing Volume (GLV) stood at approximately 89 MSF, matching the record high achieved in 2024. This marked the fourth consecutive year of growth and the second straight year of record leasing, reinforcing India’s position as a preferred global office destination.
Fresh leasing continued to dominate demand, accounting for nearly 80% of annual GLV. This signals occupiers’ long-term commitment to scaling operations and their sustained preference for high-quality, future-ready office spaces.
Bengaluru led leasing activity with around 22 MSF, followed by Mumbai at approximately 17 MSF and Delhi NCR at nearly 16 MSF. Together, these three cities accounted for 62% of total leasing during the year. Hyderabad (12.4 MSF), Pune (9.9 MSF), Chennai (9.0 MSF), Kolkata (1.7 MSF) and Ahmedabad (0.9 MSF) also recorded steady activity. Delhi NCR and Chennai posted healthy year-on-year leasing growth of 25% and 23%, respectively.
GCCs and IT-BPM anchor demand
Global Capability Centres (GCCs) emerged as a major growth engine, recording a new leasing high of 29.3 MSF and accounting for 33% of total GLV. This highlights India’s central role in global enterprise location strategies, as multinational firms deepen and expand their operations in the country.
From a sectoral perspective, IT-BPM retained its leadership position, accounting for 31% of total leasing and recording its highest-ever annual leasing volume. Flexible workspace operators emerged as the second-largest demand driver with a 15.3% share, reflecting a 9% year-on-year increase. BFSI and Engineering & Manufacturing followed closely, contributing 15.1% and 14.3% of leasing activity, respectively. This increasingly diversified occupier base underscores the resilience and depth of India’s office market.
Supply crosses a key milestone
On the supply side, new completions reached a record 53 MSF in 2025, marking a 17% year-on-year increase. Bengaluru and Pune together accounted for nearly half of the annual supply, reflecting strong developer confidence in these markets.
After several years of muted deliveries, annual completions crossed the 50 MSF threshold for the first time, offering occupiers more choice and easing pressure in markets that had been grappling with limited availability.
Despite record supply additions, demand remained strong enough to drive vacancy compression. Overall vacancy levels declined by 210 basis points year-on-year, the steepest annual drop on record. All major cities reported lower vacancies, except Pune and Ahmedabad. Pre-commitments also gained momentum, particularly in prime locations where occupiers moved early to secure quality space amid tightening availability.
Rents rise across key markets
Rental growth was observed across all top eight cities in 2025. Hyderabad and Mumbai led the pack with 12–14% year-on-year growth, reflecting strong demand and limited Grade A availability. Ahmedabad, Delhi NCR and Chennai recorded rental increases in the 6–9% range, signalling broad-based upward pressure on rents.
Industry leaders see long-term momentum
Commenting on the performance, Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, said, “This year’s performance reflects more than record numbers, it signals a long-term growth trajectory anchored in strong fundamentals. Occupier confidence, deep structural demand, and continued infrastructure development will keep India at the forefront of global enterprise decision-making. With GCC expansion accounting for nearly one-third of total leasing, alongside rising technology adoption, a diversified occupier base and a vast talent pool, India is well positioned to maintain its leadership in the global office market through 2026 and beyond.”
Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield, added, “2025 has been a turning point for India’s office market in how demand is shaping the future of work. Bengaluru, Delhi NCR and Mumbai collectively accounted for more than half of net absorption, while the acceleration in Chennai signals the rise of new corridors of opportunity. Fresh leasing accounting for nearly 80% of activity underscores the sustained appetite for quality office spaces, as IT-BPM, GCCs, and flex operators redefine workplace strategies and create a more agile, collaborative ecosystem. As these strategies evolve and demand spreads into emerging micro-markets, India’s office sector will continue to adapt and deliver spaces that empower a dynamic, future-ready workforce.”
Outlook for 2026
With record absorption, strong leasing, falling vacancies and rising rents, India’s office market enters 2026 from a position of strength. Backed by structural demand, global occupier interest and continued infrastructure expansion, the sector appears well placed to sustain its momentum in the years ahead.
