Is Office Leasing in India Steady at 75.2 Million sq ft in 2025, with Bengaluru Leading?
Synopsis
India's office leasing landscape remains robust as it closes 2025 with a steady absorption rate of 75.2 million sq. ft. Bengaluru takes the lead, showcasing resilience amidst global uncertainties. What does the future hold for the office market in 2026? Dive into the insights from Savills India and explore the evolving trends.
Key Takeaways
The office space absorption in India is steady at 75.2 million sq. ft. .
Bengaluru is the leading city for gross absorption.
Total demand for 2026 is expected to reach 75 million sq. ft. .
Grade A stock is projected to increase to 937.7 million sq. ft. in 2026.
IT-BPM and flexible workspace sectors dominate leasing activity.
New Delhi, Dec 29 (NationPress) The absorption of office space in six major cities across India reached 75.2 million sq. ft. by the end of CY25, consistent with the figures from the previous year, according to a report released on Monday.
The analysis from the real estate consultancy Savills India highlighted that Bengaluru, Delhi-NCR, and Mumbai were the leading performers, together representing approximately 61 percent of the overall leasing activity in 2025.
It is anticipated that total demand will reach 75 million sq. ft. in 2026, with supply standing at 58.2 million sq. ft. in 2025, projected to increase to 90.8 million sq. ft. next year.
These leasing metrics reflect only newly signed leases, excluding pre-commitments and lease renewals.
The cumulative Grade A stock was recorded at 846.9 million sq. ft. in 2025, with an expected rise to 937.7 million sq. ft. in 2026.
“In spite of global uncertainties, India's office sector concluded 2025 on a strong and resilient note. The growth was propelled by new market entrants and increasing demand from GCCs,” stated Naveen Nandwani, MD of Commercial Advisory and Transactions at Savills India.
Looking forward to 2026, the outlook remains optimistic, fueled by growth in GCCs, Technology, and BFSI sectors, as mentioned in the report. Although a robust supply pipeline may slightly elevate vacancy rates, it will grant tenants access to premium spaces, keeping rental increases largely stable, with limited potential for growth in select micro markets, Nandwani added.
City-specific data indicated that Bengaluru led with 20.2 million sq. ft. of gross absorption, followed by Delhi-NCR at 13.6 million sq. ft. and Mumbai at 12.1 million sq. ft.
The IT-BPM and flexible workspace segments maintained leadership with shares of 33 percent and 15 percent, respectively, in total leasing. Leasing activity in Bengaluru saw a decrease of about 12 percent year-on-year, reflecting careful decisions by occupiers and postponed deal finalizations due to global volatility.
Chennai, Hyderabad, and Pune recorded 9.1 million sq. ft., 11.4 million sq. ft., and 8.8 million sq. ft. respectively. Notably, Hyderabad's leasing was significantly bolstered by GCC transactions, which constituted 43 percent of the total gross absorption.
Point of View
The data reflects a steady and resilient office leasing market in India. The consistent absorption rates and the strong performance of cities like Bengaluru and Delhi-NCR indicate a positive outlook for the commercial real estate sector going into 2026. This growth not only demonstrates the recovery from previous uncertainties but also highlights the increasing demand for quality office spaces.
NationPress
10 May 2026
Frequently Asked Questions
What is the total office space absorption in India for 2025?
The total office space absorption in India for 2025 is 75.2 million sq. ft. .
Which city leads in office space absorption?
Bengaluru leads in office space absorption with 20.2 million sq. ft. .
What is the expected demand for office space in 2026?
The expected demand for office space in 2026 is projected to reach 75 million sq. ft. .
What sectors are driving the office leasing market?
The IT-BPM and flexible workspace sectors are the primary drivers of the office leasing market, accounting for 33 percent and 15 percent shares respectively.
How did the leasing volumes change in Bengaluru?
Leasing volumes in Bengaluru moderated by approximately 12 percent year-on-year.
