India’s office market set a new benchmark in 2025 with net leasing reaching 55.16 million sq ft across the top seven cities. Led by GCCs and coworking demand, the market saw rising rentals, easing vacancies, and steady supply growth, highlighting strong occupier confidence despite global challenges.
India’s office market delivered its strongest performance yet in 2025, with net leasing across the top seven cities touching an all-time high of around 55.16 million square feet, according to Anarock. This represents a 10 per cent year-on-year increase from 49.95 million square feet in 2024, achieved despite headwinds such as global tariff tensions and workforce rationalisation in the IT sector. The milestone reflects sustained occupier confidence and the growing depth of India’s commercial real estate ecosystem.
GCCs Take the Lead in Office Demand
Global Capability Centres emerged as the primary growth engine, accounting for a record 41 per cent share of gross absorption, up from 36 per cent a year earlier. Large multinational firms, particularly from the US, continued to commit to India for its cost efficiency, talent availability, and economic stability. Peush Jain, Managing Director, Commercial Leasing and Advisory at Anarock Group, said, “Global capability centres are leading the charge, capturing a record 41 per cent share of gross absorption… major US corporates are snapping up large office spaces across key cities.” This trend reinforced demand for large-format, Grade-A office assets.
Coworking and BFSI Gain Momentum
Sector-wise, IT and IT-enabled services remained the largest demand driver, accounting for 27 per cent of total leasing in 2025. Coworking followed closely, accounting for 23 per cent, reflecting steady growth in managed and flexible workspace adoption by enterprises. BFSI accounted for 18 per cent of total demand, while consultancy and e-commerce also expanded their footprints. Compared with 2024, coworking demand rose by 2 per cent, highlighting its growing role as a core occupier segment rather than a fringe alternative.
City Performance Shows Mixed Trends
Bengaluru retained its position as India’s largest office market, leasing about 14.15 million square feet in 2025, though it saw a modest 5 per cent year-on-year dip. Pune emerged as the fastest-growing market, with net absorption jumping 63 per cent to 7.8 million square feet. Mumbai Metropolitan Region, Chennai, Hyderabad, and NCR posted healthy growth of 15 per cent, 12 per cent, 9 per cent, and 7 per cent, respectively. Kolkata and Bengaluru were the only markets to see marginal declines, though on relatively stable bases.
Supply Rises as Vacancies Ease
New office completions across the top seven cities rose 8 per cent year-on-year to 51.83 million square feet in 2025. Bengaluru led additions with 13.5 million square feet, while MMR and Hyderabad saw notable supply slowdowns. Office vacancy levels eased slightly to 16.10 per cent from 16.50 per cent in 2024, indicating balanced demand-supply dynamics, even as Hyderabad continued to report the highest vacancy at 26.3 per cent.
Rentals Strengthen on Tightening Markets
Rental growth remained firm across major cities. Average monthly office rents increased 6 per cent to ₹92 per square foot in 2025. Bengaluru recorded the sharpest rise at 9 per cent, with average rents touching ₹102 per square foot. With GCC-led demand, expanding coworking adoption, and controlled vacancy levels, India’s office market enters 2026 on a strong footing, reinforcing its status as one of the most resilient commercial real estate markets globally.
