Did India’s office leasing achieve an impressive 20% growth in 2025, while residential sales remain stable?
Synopsis
India's commercial real estate market has reached new heights in 2025, with a striking 20% growth in office leasing, while residential sales remain stable. Discover how this shift positions India as a preferred destination for global businesses and what it means for the future of real estate in the country.
Key Takeaways
India's office leasing market grew by 20% in 2025.
Annual leasing reached 86.4 million sq ft .
Residential sales stabilized at 348,204 units .
Bengaluru led the leasing with 28.7 million sq ft .
Rental prices increased by 1% to 16% YoY.
New Delhi, Jan 9 (NationPress) India’s office sector reached a remarkable milestone in 2025, with annual gross leasing skyrocketing to 86.4 million sq ft, reflecting a 20 percent year-on-year increase and a 43 percent surge above the pre-pandemic peak of 2019, according to a report released on Friday.
The real estate services firm Knight Frank India indicated that in the residential market, sales across eight major cities remained relatively stable at 348,204 units in 2025, showing a slight decline of 1 percent YoY.
During the same timeframe, new property launches totaled 362,184 units in key markets, down by 3 percent YoY. Mumbai emerged as a dominant player, contributing 29 percent of total sales with 97,188 units.
The robust activity in the office sector highlights sustained demand from occupiers, reaffirming India’s status as a global frontrunner in the commercial real estate domain, as per the report.
The positive performance across various regions underscores the maturity of India’s office ecosystem, bolstered by strong talent pools, resilient demand drivers, and controlled supply levels.
“With annual leasing volumes exceeding 20 percent YoY, this current phase signifies not only a numeric high but also a fundamental shift in how both global and domestic firms perceive India as a long-term business hub,” stated Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India.
Bengaluru dominated the office leasing market with an unprecedented 28.7 million sq ft transacted. Meanwhile, Delhi-NCR maintained its status as the second-largest office market in India based on total inventory. The residential sector seems to be normalizing after three years of heightened activity, driven by end-user engagement and supported by premiumization and consistent price growth, as highlighted in the report.
Global Capability Centres (GCCs) accounted for 38 percent of total absorption, while third-party IT services experienced a notable rebound, occupying 15.3 million sq ft (which is 20 percent of the transacted area), marking a 94 percent YoY increase.
Operators of flexible workspaces leased an unprecedented 18.6 million sq ft, achieving a 19 percent increase YoY. Rental prices saw growth ranging from 1 percent to 16 percent YoY across various markets in the second half of 2025, with Kolkata leading at 16 percent, followed closely by NCR and Hyderabad with 10 percent each.
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Point of View
It's clear that India's robust growth in office leasing reflects a significant transformation in the commercial real estate landscape. The resilience shown amidst market fluctuations is commendable and suggests a bright future for investment opportunities in the nation.
NationPress
4 Jul 2026
Frequently Asked Questions
What was the growth rate of India's office leasing in 2025?
India's office leasing experienced a remarkable 20% year-on-year growth in 2025.
How many units were sold in the residential market?
In 2025, the residential market recorded sales of 348,204 units across eight major cities.
Which city led the office leasing market?
Bengaluru led the office market with a historic leasing of 28.7 million sq ft .
What percentage of sales did Mumbai contribute?
Mumbai accounted for 29 percent of the total office sales with 97,188 units .
How did rental prices change in 2025?
Rents across all markets grew between 1 percent and 16 percent year-on-year in the second half of 2025.
