India’s office leasing activity soared to a historic peak in the first quarter of 2025, with 19.46 million square feet (sq ft) of lease marking an all-time high, driven by a strong performance from both global and domestic occupiers. According to a global real estate firm JLL report, domestic occupiers alone accounted for a record 8.82 million sq ft, reflecting a robust demand in the sector.

The first quarter of 2025 saw a 28.4% year-on-year increase in gross leasing across India’s top seven cities, with every major city experiencing growth except for Chennai. While global occupiers remained a significant force, especially in the form of Global Capability Centers (GCCs), domestic occupiers were also pivotal in this record-breaking performance.

Bengaluru led the charge for the fourth consecutive quarter, accounting for 21.9% of total leasing activity. Delhi-NCR followed closely with 21.6%. Bengaluru, along with Hyderabad, Mumbai, and Pune, saw a year-on-year increase in leasing by domestic occupiers. Notably, Bengaluru and Pune saw a dominant share of leasing activity from the flexible workspace (flex) sector, which comprised 70% and 61.8% of domestic occupier take-up, respectively.

“The Indian office market has demonstrated remarkable resilience and growth in Q1 2025, underpinned by the strongest-ever performance by domestic occupiers, driven largely by flex and third-party tech firms,” said Samantak Das, Chief Economist for India at JLL.

Regarding sectoral contributions, the banking, financial services, and insurance (BFSI) sector emerged as the most significant contributor to leasing in Mumbai. In contrast, the technology sector was the primary driver in Hyderabad.

The surge in demand has led to a sharp increase in net absorption, reaching 12.78 million sq ft in Q1 2025—up 54% from last year, highlighting the continued expansion-driven demand within India’s office market.

A key trend underscored by the report is the increasing dominance of global occupiers, particularly GCC operations, which accounted for 64.1% of international leasing activity. This trend showcases India’s growing status as a strategic hub for multinational companies.

“India’s commercial real estate market is showing strong resilience with a significant drop in vacancy rates to a four-year low of 15.7%, with prime locations witnessing even lower vacancy levels. This signals a bullish outlook for the future,” explained Rahul Arora, Senior Managing Director at JLL.

The combination of low vacancy rates, continued demand, and expansion-driven growth paints an optimistic future for India’s office leasing sector in the coming quarters.