India’s office market hit a historic high in 2025 with 83.3 MSF of leasing. GCCs led with a record 31 MSF, Flex operators reached their highest quarterly share, and net absorption touched an all-time high of 57 MSF. Vacancy levels dropped to a five-year low as major cities posted record activity and strong demand signals.
India’s office market achieved its strongest performance to date in 2025, with gross leasing reaching 83.3 million sq ft. A new report by JLL highlights that global companies accounted for 58.4% of total activity, a sign that India continues to attract long-term corporate investment despite global economic volatility. Major office hubs including Bengaluru, Hyderabad, Pune, and Mumbai recorded their best-ever leasing years, while emerging cities also showed consistent growth as occupiers diversified footprints.
GCCs and Flex Operators Power Market Momentum
Global Capability Centers were the standout drivers of demand, securing 37.7% of total leasing and absorbing an unprecedented 31 million sq ft—marking their highest annual intake. The Flex workspace segment also surged, contributing 26.6% of Q4 leasing, the highest quarterly share on record. Domestic Flex operators alone leased around 18 million sq ft for the year, reflecting sustained interest from enterprises seeking agile, scalable workspaces. Technology companies topped the sectoral charts with 25.8% of full-year leasing, while Manufacturing/Industrial and BFSI segments posted nearly equal contributions.
Net Absorption at Its Highest-Ever Level
Net absorption rose to 57 million sq ft in 2025, the highest ever recorded, signalling both healthy demand and strong actual occupancy across markets. Bengaluru led Q4 absorption with a 37.2% share, followed by Hyderabad at 15.7% and Delhi NCR at 14%. According to Dr. Samantak Das, Chief Economist at JLL India, “Nearly 200 new GCCs entered India over the past two years, now representing half of all active space requirements.” He added that with a strong pipeline of deals and high occupancy rates, India’s office leasing could surpass 100 million sq ft within the next two years.
Vacancy Levels Drop to Multi-Year Lows
While many global markets are shrinking office footprints, India continues to expand. Overall vacancy dropped to 15.2%, the lowest in five years, supported by steady absorption and limited new supply in key markets. Bengaluru’s vacancy is now at a four-year low, while Mumbai and Delhi NCR stand at their lowest levels in 15 years. Tight supply is increasing pressure on occupiers but also signals long-term confidence from global enterprises planning headcount growth.
Outlook for 2026 Remains Strong
India’s office market is expected to maintain its upward trajectory in 2026, supported by sustained GCC activity, tech hiring, and government policies boosting innovation and manufacturing. With rising leasing volumes, low vacancy and strong sectoral demand, India’s office real estate continues to strengthen its position as a key global business destination.
