India’s domestic companies are reshaping the country’s commercial real estate market, emerging as key players in office leasing activity. According to a new report by global property consultant JLL, homegrown firms have ramped up their presence significantly, now accounting for 46% of total leasing volumes since 2022, a significant jump from 35% during the 2017–2019 period.

This surge peaked in 2024, with Indian firms leasing 31.9 million square feet of office space. That momentum has carried over into early 2025, with 8.8 million square feet already leased in the first quarter alone. “This evolution reflects India’s strengthening economy and changing corporate strategies focused on efficiency and consolidation,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

The BFSI (Banking, Financial Services and Insurance) sector is leading the charge, which has witnessed the most dramatic expansion in deal sizes. Average lease volumes in this sector have more than doubled—from around 11,000 sq. ft pre-2020 to approximately 25,000 sq. ft in the last two years, marking a 125-130% increase. Manufacturing firms close behind, with average deal sizes nearly doubling to 16,000 sq. ft.

Delhi-NCR currently leads in domestic leasing activity, but Mumbai is seeing the sharpest growth, with its share expanding by nearly 62%. “The evolution of India’s domestic corporate real estate landscape reveals a fascinating divergence in occupier preferences across major metros,” said Rahul Arora, Office Leasing and Retail Services, JLL. “Delhi NCR and Mumbai have emerged as clear frontrunners, but with distinctly different demand drivers.”

India’s push toward domestic production and tech growth also influences this trend. The IT and ITeS sectors now average 31,000-32,000 sq. ft per deal—an 85-95% increase from the 2017–2019 average. Meanwhile, flexible workspace operators continue to close the largest deals, averaging 57,000-60,000 sq. ft, up 35-45% from past levels.

The report suggests that this growing momentum, driven by domestic consolidation and sectoral growth, could push India’s total office leasing activity to over 100 million square feet within 3-4 years. As Indian occupiers cement their presence, they’re reshaping demand and setting the stage for a more resilient and dynamic commercial real estate landscape.