The Indian office leasing market has witnessed remarkable growth in the first half of 2025, with a total of 48.9 million square feet leased across the top eight cities. This represents a near 41% year-on-year increase compared to the same period in 2024. Bengaluru has emerged as the standout performer, absorbing a record 18.2 million square feet of office space in H1 2025, driven by strong demand from Global Capability Centres (GCCs). The commercial real estate sector in India continues to thrive, and experts predict a new all-time high for the year.
This surge in office leasing reflects growing occupier confidence and highlights India’s resilient economic fundamentals, further cementing the country’s position as a global business hub.
Key Highlights of Office Leasing in India (H1 2025)
- Total Leasing Volume: 48.9 million square feet across the top 8 cities
- Year-on-Year Growth: 41% increase in office leasing activity compared to H1 2024
- Top Performing City: Bengaluru with 18.2 million square feet leased (record absorption)
- Projected Full-Year Leasing Volume: 80-90 million square feet
- Office Leasing by Sector: 55% driven by Global Capability Centres (GCCs)
Bengaluru: Leading the Charge in Office Leasing
Bengaluru’s office leasing market has outperformed expectations in the first half of 2025. The city absorbed an unprecedented 18.2 million square feet, nearly doubling its leasing activity compared to the same period last year. This surge can be attributed to the rise of Global Capability Centres (GCCs), which accounted for 55% of Bengaluru’s total office leasing activity.
Pre-commitments made up 46% of the space absorbed in Bengaluru, emphasizing the strong demand for future-ready office spaces and the gap between supply and demand. This indicates an urgent need for occupiers to secure high-quality office space ahead of time.
Other Key Markets
While Bengaluru’s performance was exceptional, other cities also experienced significant leasing activity:
- Delhi-NCR: Leasing increased by 27.5% to 7.2 million square feet.
- Hyderabad: Office leasing grew by 16% to 5.9 million square feet.
- Chennai: Leasing saw a dramatic 68% rise, reaching 5.1 million square feet.
- Mumbai: The leasing volume fell by 5% to 5.5 million square feet.
- Pune: The office leasing volume grew by 17%, reaching 5.1 million square feet.
- Kolkata: Leasing rose by 60% to 1.1 million square feet.
- Ahmedabad: A significant decline of 51% was recorded, with just 0.8 million square feet leased.
New Office Completions
While office leasing has been robust, new office completions during H1 2025 recorded a decline of 20% year-on-year, totaling 20.1 million square feet. This drop reflects a shift in development focus, as the residential market had previously dominated the real estate sector. However, the office market is gradually seeing renewed interest, with developers starting to pivot back toward commercial space development.
Expert Opinion
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented on the robust performance of India’s office leasing market:
“The Indian office market scaled another record high in H1 2025, recording a remarkable 42% YoY growth. This performance is a testament to India’s resilient economic fundamentals and its growing prominence as a global business hub. The sustained demand for high-quality office spaces owing to occupiers’ confidence has propelled transaction volumes to historic highs. As we move forward, India’s strategic appeal and innovative spirit will continue to position it as a global leader in the office market.”
Quick Facts at a Glance
| City | Leasing Volume (Mn Sq Ft) | YoY Growth |
|---|---|---|
| Bengaluru | 18.2 | Double the volume from H1 2024 |
| Delhi-NCR | 7.2 | +27.5% |
| Hyderabad | 5.9 | +16% |
| Chennai | 5.1 | +68% |
| Mumbai | 5.5 | -5% |
| Pune | 5.1 | +17% |
| Kolkata | 1.1 | +60% |
| Ahmedabad | 0.8 | -51% |
FAQ
1. What is the total office leasing volume in India for H1 2025?
- The total office leasing volume in India for H1 2025 is 48.9 million square feet.
2. Which city recorded the highest office leasing volume in H1 2025?
- Bengaluru recorded the highest office leasing volume, with 18.2 million square feet leased.
3. What drove the office leasing activity in Bengaluru?
- The majority of the leasing in Bengaluru was driven by Global Capability Centres (GCCs), which accounted for 55% of the total leasing volume.
4. How did the leasing activity in Delhi-NCR perform?
- Office leasing in Delhi-NCR increased by 27.5%, reaching 7.2 million square feet in H1 2025.
5. What is the projected full-year leasing volume for 2025?
- The projected full-year leasing volume for 2025 is expected to reach between 80-90 million square feet.