India’s office space market kicked off 2025 on a high note, with Mumbai emerging as a standout performer. According to CBRE South Asia Pvt. Ltd.’s latest report, India Office Figures Q1 2025, Mumbai saw a sharp 63% year-over-year rise in office leasing, nearly 2.9 million sq. ft. between January and March. The Banking, Financial Services, and Insurance (BFSI) sector was the driving force behind this surge, contributing over half, 53%, of the city’s total leasing volume.

Pan-India, the office market recorded 18 million sq. ft. of gross absorption in the first quarter, marking a 5% rise compared to Q1 2024. Major office hubs—Bengaluru, Delhi-NCR, and Mumbai—accounted for about 64% of total leasing activity, underscoring their dominant position in India’s commercial real estate landscape.

Bengaluru led the pack with 4.8 million sq. ft. of space absorbed, primarily by American tech giants. The tech sector accounted for 33% of the city’s leasing, followed by media and entertainment (24%) and BFSI (18%). Delhi-NCR followed closely with 3.8 million sq. ft., primarily fueled by Global Capability Centers (GCCs) within the BFSI sector.

Other key markets also showed strong performance. Hyderabad posted 1.9 million sq. ft. in absorption, driven by American life sciences and tech firms. Chennai saw 2.6 million sq. ft., led by IT, FMCG, and flexible space operators, while Pune recorded 1.3 million sq. ft., thanks to growing demand from domestic BFSI companies.

A key highlight from the report is the rise in leasing by GCCs, which took up 8 million sq. ft.—45% of total Q1 activity—reflecting a massive 66% annual increase. Bengaluru led the GCC segment with a 40% share, followed by Delhi-NCR (24%) and Chennai (14%).

“India’s office sector is on a solid trajectory for sustained leasing growth, driven by strategic expansions from domestic and global occupiers,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE. “Established hubs like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai continue to lead, while cities like Chennai and Pune are gaining traction due to a strong talent base and a well-positioned supply pipeline.”

Sustainability also emerged as a central theme. A striking 81% of the total leasing in Q1—about 14.7 million sq. ft.—was for green-certified buildings, showing the growing alignment of office occupiers and developers with ESG standards.

“India is rapidly evolving as a global hub for GCCs, with multinational firms leveraging its skilled workforce to drive innovation and digital transformation,” noted Ram Chandnani, Managing Director of Advisory & Transaction Services at CBRE India. “In 2025, GCCs are expected to account for nearly 35-40% of total office space absorption.”

As sectors like BFSI, technology, and life sciences expand and companies push for higher ESG compliance, India’s office market is poised for sustained, future-ready growth.