Despite global uncertainties, IT layoffs and tariff-related tensions, India’s office real estate market delivered a standout performance in 2025. According to latest data from ANAROCK Research, net office absorption across the country’s top seven cities touched an all-time high of approximately 55.16 million sq. ft., marking a 10% increase over nearly 49.95 million sq. ft. leased in 2024.
Bengaluru continued to lead in absolute leasing volumes, recording around 14.15 million sq. ft. of net office absorption in 2025. However, the tech hub was among the few cities to witness a decline, posting a 5% year-on-year drop compared to 14.87 million sq. ft. last year. Kolkata also saw a marginal decline of 3%, with net absorption easing to about 1.15 million sq. ft. from 1.18 million sq. ft. in 2024.
In contrast, Pune emerged as the fastest-growing office market, registering a sharp 63% jump in net absorption. Leasing activity in the city surged from roughly 4.8 million sq. ft. in 2024 to about 7.8 million sq. ft. in 2025, highlighting growing occupier confidence beyond traditional metro leaders.
Other key markets reported healthy growth. Net office leasing rose 15% in the Mumbai Metropolitan Region (MMR), 12% in Chennai, 9% in Hyderabad and 7% in the National Capital Region (NCR), underscoring the broad-based nature of demand.
New office supply also kept pace. Across the top seven cities, completions increased by 8% year-on-year to approximately 51.83 million sq. ft. in 2025, up from 48.11 million sq. ft. in 2024. Bengaluru again led with about 13.5 million sq. ft. of new supply, an 8% increase over the previous year.
However, supply trends varied sharply across cities. MMR and Hyderabad were the only markets to see a contraction in new completions, with supply falling 35% and 39% respectively. MMR added around 6.05 million sq. ft. in 2025, compared to 9.27 million sq. ft. in 2024, while Hyderabad saw new supply drop to about 9 million sq. ft. from 12.88 million sq. ft.
Pune stood out once again, recording a massive 103% jump in new office supply to over 10.60 million sq. ft. Chennai also saw strong momentum, with completions rising 72% year-on-year to 3.90 million sq. ft., while NCR posted a 46% increase to 8.65 million sq. ft. Kolkata recorded the highest percentage growth at 317%, though in absolute terms supply remained limited at just 0.13 million sq. ft.
“India’s office real estate market veritably boomed in 2025,” said Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group. He noted that Global Capability Centres (GCCs) were a major driver, accounting for a record 41% share of gross absorption, up from 36% in 2024, as global firms continued to expand their India footprint.
Sector-wise, IT and ITeS remained the largest demand driver with a 27% leasing share, followed closely by coworking operators at 23% and BFSI at 18%. Demand from coworking spaces rose by 2% year-on-year, while BFSI, consulting and e-commerce also gained marginally.
Vacancy levels improved slightly, with overall vacancies across the top cities dipping to 16.10% in 2025 from 16.50% a year earlier. Lower supply additions helped reduce vacancies in MMR and Hyderabad, though Hyderabad continued to post the highest vacancy rate at 26.30%, followed by NCR at 21.70%.
Office rentals rose modestly, averaging Rs. 92 per sq. ft. per month in 2025, up 6% from ₹87 last year. Bengaluru saw the sharpest increase at 9%, followed by Pune and NCR at 6%, reflecting sustained occupier demand despite global headwinds.
