How Did India’s Top Office Markets Achieve a Record 55.16 Million Sq Ft Net Absorption in 2025?
Synopsis
Discover how India's top office markets achieved a record-breaking net absorption of 55.16 million sq ft in 2025, defying challenges like IT layoffs. This article delves into the remarkable growth across key cities and the sectors driving this boom.
Key Takeaways
Net office absorption reached 55.16 million sq ft in 2025.
Bengaluru led in office leasing.
Pune showed the highest growth in net absorption.
GCCs captured 41% of gross absorption.
Vacancy rates decreased to 16.10%.
New Delhi, Dec 24 (NationPress) In 2025, net office absorption in India’s leading seven cities reached a phenomenal 55.16 million square feet, marking a historic milestone despite challenges like IT layoffs and tariff disputes, according to a report released on Wednesday.
The analysis by real estate services company Anarock revealed an impressive 10 percent year-on-year increase from approximately 49.95 million sq ft in 2024.
Bengaluru spearheaded office leasing with around 14.15 million sq ft, though it experienced a 5 percent annual decline in net leasing. In contrast, Pune exhibited the most significant growth in net absorption, soaring 63 percent to about 7.8 million sq ft from 4.8 million sq ft.
The Mumbai Metropolitan Region (MMR), Chennai, Hyderabad, and Delhi-NCR also saw increases in net absorption of 15 percent, 12 percent, 9 percent, and 7 percent, respectively.
New office completions across these seven cities rose by 8 percent to roughly 51.83 million sq ft, with Bengaluru contributing about 13.5 million sq ft. Pune experienced a remarkable 103 percent annual surge in new office supply, exceeding 10.60 million sq ft, while Kolkata recorded an astounding 317 percent increase in completions.
Peush Jain, MD-Commercial Leasing and Advisory at Anarock Group, stated, “India's office real estate market experienced a significant boom in 2025, with both net absorption and new completions escalating due to the country’s robust economic growth.”
He further noted, “GCCs are leading the charge, capturing a record 41 percent share of gross absorption — up from 36 percent in 2024. Attracted by India's economic stability, strength, and cost efficiency, major US companies are acquiring substantial office spaces in our key cities.”
IT/ITeS sectors accounted for 27 percent of leasing, followed by coworking at 23 percent and BFSI at 18 percent. Office space vacancies decreased to 16.10 percent from 16.50 percent, and average monthly rentals rose by approximately 6 percent to Rs 92 per sq. ft, as reported.
Point of View
I believe the impressive net absorption figures reflect India's enduring economic vitality. Despite global challenges, the resilience shown by the commercial real estate sector is a testament to the country's potential and the adaptability of its workforce.
NationPress
21 Jun 2026
Frequently Asked Questions
What factors contributed to the high net absorption rates in 2025?
The significant net absorption rates were influenced by robust economic growth, major corporate expansions, and increasing demand from the IT/ITeS and coworking sectors.
Which city led in office leasing?
Bengaluru led in office leasing with approximately 14.15 million sq ft, despite a slight annual decline in net leasing.
What was the increase in new office completions?
New office completions saw an 8 percent increase, totaling around 51.83 million sq ft across the seven major cities.
