India’s office space market is seeing a substantial uptick in activity, driven mainly by foreign companies, according to real estate consultancy CBRE. In the first quarter of 2025, global firms leased 111.6 lakh sq ft of office space across nine major Indian cities, accounting for 62% of total demand.

The latest data from CBRE reveals that overall gross leasing in India climbed to 180 lakh sq ft between January and March—marking a 5% increase from last year, which saw 171 lakh sq ft leased. Foreign occupiers significantly outpaced domestic firms, which leased 68.4 lakh sq ft during the same timeframe.

“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 IT and business hubs such as Bengaluru, Hyderabad, Delhi-NCR, and Mumbai remain the frontrunners in office space absorption. However, cities like Chennai and Pune are emerging as strong contenders due to a robust talent pool and the availability of well-positioned new supply.

CBRE’s report also highlighted a growing preference among companies for high-quality, sustainable workspaces. “As businesses seek quality workspaces, the demand for sustainable offices is rising, with occupiers prioritizing employee experience and long-term growth,” Magazine noted.

A key factor behind this momentum is the increasing presence of Global Capability Centres (GCCs), which continue to expand their footprint in India. These centres, often set up by multinational corporations to handle IT, finance, and customer support operations, reinforce India’s status as a global back-office hub.

With foreign occupiers showing sustained interest and secondary cities building up infrastructure and workforce capabilities, the Indian office space market is poised for continued growth through 2025.