India’s top 7 cities experienced a 40% increase in net office leasing in H1 2025, totalling 26.8 million sq ft. Bengaluru led the pack with the highest leasing and new office supply. While most cities showed strong growth, Hyderabad’s vacancy rate rose, and Kolkata was the only city to witness a decline.
India’s commercial office market is booming, with net leasing across the top seven cities reaching 26.8 million sq ft in the first half of 2025—a 40% year-on-year rise, according to ANAROCK Research. This significant surge from 19.08 million sq ft in H1 2024 signals sustained occupier confidence amid global uncertainty.
Bengaluru continues to dominate the national office space landscape. The city recorded the highest net office leasing in H1 2025 at 6.55 million square feet, marking a 64% increase from 4 million square feet in the same period last year. It also led in new office completions, adding 6.91 million sq ft, up 26% from H1 2024.
Pune emerged as the fastest-growing market in terms of absorption. The city witnessed an impressive 188% increase, jumping from 1.32 million sq ft to 3.8 million sq ft. On the other hand, Kolkata stood out for the wrong reasons, registering a 51% decline in leasing activity, which fell to just 0.45 million square feet.
Overall, the top seven cities experienced a 25% increase in new office completions, rising from 19.65 million square feet in H1 2024 to 24.51 million square feet in H1 2025. Besides Bengaluru, other key metros also contributed to this surge in new supply, supporting growing demand from sectors such as tech, BFSI, and GCCs.
Vacancy levels showed marginal improvement across the country, dropping to 16.30% from 16.70% a year ago. However, Hyderabad and Mumbai Metropolitan Region (MMR) saw an uptick. Hyderabad now holds the highest vacancy rate among the top cities, rising from 25.50% to 26.60%, while MMR’s rate increased from 13% to 15.10%.
Rents across the office segment also edged up modestly. Average monthly office rentals rose by 5%, from ₹84 per sq ft in H1 2024 to ₹88 per sq ft in H1 2025. Chennai led with a 6% increase, followed closely by Bengaluru and Delhi-NCR, both recording 5% annual growth in office rents.
With global firms seeking stability and growth, India remains a top choice for office expansion. Bengaluru’s performance, in particular, reaffirms its status as the country’s business capital, driven by tech demand, infrastructure readiness, and a thriving innovation ecosystem.
As the flex and Grade A segments continue to gain traction, the Indian office market’s momentum signals a robust future—one where regional leaders like Bengaluru shape the trajectory of national growth.
