India’s office space sector has kicked off 2025 with unprecedented momentum, recording a 74% surge in gross leasing across the top eight cities during the January–March quarter. According to Knight Frank India’s latest India Real Estate: Office and Residential Report, leasing activity hit 282 lakh square feet — the highest ever for a quarter.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, called it “an exceptional period for the Indian office space market,” attributing the upswing to the growing presence of Global Capability Centres (GCCs). “With the demand for GCCs consistently breaching new highs, global perception of India as a long-term investment destination continues to strengthen,” Baijal said.

Bengaluru led the leasing charge, clocking in at 127 lakh square feet — more than triple its figure from last year. Notably, pre-commitments accounted for 58% of the activity in the city, reflecting high occupier confidence. Hyderabad followed with a 31% rise in demand, totalling 40 lakh square feet. Pune recorded a remarkable 91% jump to 37 lakh square feet, while Mumbai posted a 24% increase to 35 lakh square feet.

Southern cities vastly outperformed their northern and eastern counterparts. Chennai reported a 56% spike in leasing, whereas Delhi-NCR saw a steep 33% decline, with activity falling to 21 lakh square feet. Ahmedabad and Kolkata also experienced downturns, dropping 54% and 16% respectively.

A key driver behind this record-breaking performance was the rise of GCCs, which accounted for 124 lakh square feet of transactions in Q1 2025, up from 50 lakh square feet in the same quarter last year. These centres are increasingly seen as vital operational hubs for multinational corporations, enhancing India’s appeal as a strategic base for global operations.

Ramesh Nair, CEO of Mindspace REIT, highlighted the sectoral diversity fueling this leasing boom. “India’s office market is witnessing record leasing momentum, led by strong demand from GCCs, BFSI, technology firms, and the rapidly growing data centre sector,” he noted. Nair also pointed to shifting occupier expectations: “We are seeing a clear shift in preferences towards Grade A office spaces that offer more than just infrastructure — tenants are increasingly valuing premium experiences, including integrated retail, F&B, hospitality, and wellness amenities.”

As Indian cities evolve into amenity-rich office ecosystems, the country is reinforcing its position as a global hub for enterprise, technology, and innovation. The growing appetite for high-quality, future-ready workspaces will sustain this upward leasing trend in the coming quarters.