India’s office real estate market reached new heights in 2025, with gross leasing touching 83.3 million square feet, reaffirming the country’s position as a leading global business hub. Global companies accounted for a 58.4% share of this activity, highlighting India’s structural advantages even amid global economic uncertainties, said the JLL report.
Bengaluru, Hyderabad, Pune, and Mumbai all recorded their best-ever leasing years, while other cities also saw growth or maintained steady leasing volumes. This shows that demand is spreading beyond the traditional hubs as businesses diversify their operations.
Global Capability Centers Lead the Charge
Global Capability Centers (GCCs) emerged as the dominant force, capturing 37.7% of total leasing and absorbing a record 31 million sq. ft, the highest ever for this segment. The Flex workspace segment also saw a significant surge, contributing 26.6% of Q4 leasing, marking its highest quarterly share to date.
Tech companies led full-year activity with 25.8% of total leasing, while Manufacturing/Industrial (15.4%) and BFSI (15.2%) segments showed nearly equal participation. Domestic Flex firms also posted record performance, leasing around 18 million sq. ft.
Strong Net Absorption Signals Healthy Demand
Net absorption, which measures the actual space occupied, hit 57 million sq. ft in 2025, the highest ever. In Q4, Bengaluru drove absorption with a 37.2% share, followed by Hyderabad (15.7%) and Delhi NCR (14%).
“Nearly 200 new GCCs entered India over the past two years, now representing half of all active space requirements. Coupled with strong occupancy rates and a robust deal pipeline, India’s office leasing is poised to cross the 100 million sq. ft mark in the next two years,” said Dr Samantak Das, Chief Economist, JLL India.
Vacancy Rates Drop to Five-Year Low
India’s office market continues to defy global trends of shrinking office space. Overall vacancy declined to 15.2%, down 50 basis points from the previous quarter. Bengaluru’s vacancy is now at a four-year low, while Mumbai and Delhi NCR are at historic lows not seen in the past 15 years. Tight vacancies are putting pressure on occupiers but also signal a strong appetite for expansion.
Looking Ahead: Growth Set to Continue in 2026
India’s office market is expected to maintain strong momentum in 2026. Demand from GCCs and tech firms remains high, supported by India’s skilled talent pool, strategic manufacturing policies, and innovation-driven economy. With low vacancies and rising leasing volumes, India continues to be a key destination for global businesses looking to scale operations and expand headcount.
