How Did India's Office Leasing Achieve a Record 59.6 mn sq. ft?
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Synopsis
India's office leasing market has experienced a phenomenal surge, achieving a remarkable absorption of 59.6 million square feet in just nine months. This milestone reflects the growing demand for high-quality office spaces, particularly from tech firms and global capability centers, setting the stage for continued growth in the sector.
Key Takeaways
- India's office leasing market reached 59.6 million sq. ft in 2025.
- Bengaluru led with 25% of total leasing.
- Technology firms were the primary drivers of demand.
- GCCs accounted for 39% of leasing activity.
- Supply increased by 10% year-on-year to 41 million sq. ft.
New Delhi, Oct 6 (NationPress) India’s office leasing sector has reached an unprecedented milestone in the initial nine months of 2025, witnessing an absorption of 59.6 million square feet, as per a report released on Monday.
The technology sector dominated the office leasing landscape from January to September, according to insights from CBRE South Asia Pvt. Ltd.
“As businesses strive for future-ready environments, the ongoing demand for high-quality assets remains a key driver of this upward trend. The continuous leasing of premium properties is likely to lead to a decrease in vacancy rates, with businesses increasingly looking to expand into peripheral areas due to the influx of top-tier supply,” stated Anshuman Magazine, the Chairman and CEO for India, South-East Asia, the Middle East & Africa at CBRE.
Bengaluru emerged as the leader in the market with a 25% share of leasing, equating to 15.1 million square feet. It was followed by Mumbai and Delhi-NCR with 10.6 million and 10.2 million square feet, respectively. Collectively, these three regions represented about 61% of total absorption, according to the report.
Global capability centers (GCC) contributed nearly 39% of the leasing activity during this nine-month timeframe, with Bengaluru, Pune, and Delhi-NCR accounting for 67% of the GCC take-up, as noted in the report.
Following technology firms, flexible workspace providers and financial services sectors made up around 60% of the overall demand.
Ram Chandnani, Managing Director of Leasing at CBRE India, emphasized that GCCs will continue to play a crucial role in office absorption, estimating they will account for 35-40% of total leasing in 2025.
“Established companies are likely to secure space in extensive integrated tech parks, while newcomers may turn to flexible workspace solutions. Although US firms currently lead the GCC domain, increasing interest from EMEA and APAC tenants is expected to broaden the demand spectrum,” he added.
Throughout the first nine months of this year, office supply grew by 10% year-on-year, reaching 41 million square feet. This growth was driven by Pune, Bengaluru, and Delhi NCR, which collectively contributed 66% of the total supply
Point of View
It is noteworthy that India’s office leasing market is witnessing a robust recovery, driven primarily by technological advancements and the strategic needs of global corporations. This trend not only highlights the resilience of the Indian economy but also emphasizes the growing significance of quality office spaces in attracting businesses.
NationPress
06/10/2025
Frequently Asked Questions
What factors contributed to the record office leasing in India?
The surge in office leasing in India can be attributed to the growing demand from technology companies, the preference for high-quality assets, and the strategic expansion into peripheral locations.
Which cities led the office leasing market in India?
Bengaluru, Mumbai, and Delhi-NCR were the top cities, accounting for approximately 61% of the total office absorption.
What role do global capability centers play in this market?
Global capability centers are crucial, representing nearly 39% of leasing activity and expected to account for 35-40% of total leasing in 2025.
