India’s office market achieved a record 82.6 million sq. ft. in leasing during 2025, supported by tech firms, flex operators and BFSI occupiers. GCCs remained the strongest demand engine and are expected to drive up to 40% of absorption in 2026. New supply also touched an all-time high at 58.9 million sq. ft.
India’s office market closed 2025 on a historic note, registering 82.6 million sq. ft. of gross leasing—the third consecutive yearly record—according to CBRE’s latest India Office Figures Q4 2025 report. While the annual growth stood at a modest 1%, the pace reinforced the sector’s resilience despite global headwinds. Technology firms, flexible workspace operators, and BFSI players collectively accounted for nearly 60% of all leasing activity, maintaining their position as the dominant occupier groups.
The record performance was matched by an unprecedented surge in new supply. Completions touched 58.9 million sq. ft., marking the highest annual addition to India’s Grade A inventory. Developers continued to prioritise premium assets aligned with emerging workplace expectations, particularly those focused on sustainability and employee well-being.
GCCs Remain the Market’s Powerhouse
Global Capability Centres (GCCs) continued to serve as the strongest growth engine. Anshuman Magazine, Chairman & CEO for India, Southeast Asia, Middle East & Africa at CBRE, said global companies remain steadily committed to expanding in India. He noted that “global firms are poised to expand their footprints in India through their Global Capability Centres (GCCs), buoyed by the country’s inherent advantages,” adding that these centres are projected to contribute “~35–40% of total space absorption in 2026.”
This momentum was visible in the October–December quarter, where GCCs accounted for nearly 39% of all leasing—about 8.5 million sq. ft. Bengaluru continued to lead the category with a 44% share, followed by Hyderabad at 25% and Delhi-NCR at 13%. The demand mix also broadened, with firms from the US, EMEA and APAC setting up or expanding their capability hubs in India.
Top Cities Maintain Strong Leadership
Bengaluru, Mumbai, and Delhi-NCR collectively accounted for about 61% of annual office demand, reflecting the ongoing consolidation of India’s core office hubs. Leasing strengthened further in Q4, rising 15% quarter-on-quarter to 22.2 million sq. ft.
Ram Chandnani, Managing Director, Leasing at CBRE India, said these markets will continue to lead India’s office story. He added that “Chennai and Pune are likely to continue gaining traction,” supported by strong supply pipelines and attractive talent demographics. Chandnani also expects expansions into tier-II cities as occupiers diversify beyond traditional metros.
Flex Operators Assets Shape the Future
Flexible workspace operators remained a critical growth segment, benefitting from corporates incorporating flexible formats into long-term portfolio strategies. As hybrid work stabilises, flex spaces are being leveraged for cost efficiency, scalability and risk diversification.
Sustainability Becomes a Non-Negotiable Standard
On the supply side, developers delivered 16.6 million sq. ft. in Q4 alone, with a clear shift toward green-certified, amenitised and experience-centric buildings. Sustainability, once a differentiator, is quickly becoming a baseline expectation, with LEED and IGBC certifications now seen as minimum compliance. Developers are increasingly integrating energy-efficient design, renewable energy and BRSR-aligned practices.
As Magazine noted, the coming year is set for a healthy pipeline of “premium, institutional-grade assets,” while Chandnani expects “further vacancy compression and rental appreciation across key office locations throughout 2026.”
India’s office sector enters the new year with strong fundamentals, resilient demand drivers and a deepening focus on quality—setting the stage for yet another milestone year.
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