India's Office Leasing Surges to 50 Million Square Feet

The Rising Demand for Office Spaces in India

India’s commercial real estate market is witnessing one of its strongest phases in recent years, with office leasing activity surpassing 50 million sq ft in 2025. This marks one of the highest annual volumes recorded in the country, reflecting a solid resurgence in occupier confidence after the pandemic-era slowdown. The year has seen accelerated space absorption from technology companies, Global Capability Centers (GCCs), banking and financial services, and engineering enterprises.

Industry data indicates that hybrid work has not reduced the need for offices - instead, it has reshaped demand toward modern, high-efficiency spaces. Large corporations are consolidating outdated offices and upgrading to campuses equipped with flexible layouts, sustainability certifications, and enhanced employee amenities. This shift is particularly evident in technology-driven markets such as Bengaluru, Pune, and Hyderabad.

Thriving Cities and Leasing Trends

Bengaluru continues to dominate with the highest annual absorption, supported by active GCC expansion and advanced tech infrastructure. Delhi NCR and Mumbai are witnessing renewed interest from BFSI, consulting, and manufacturing firms, while Pune and Hyderabad are reporting multi-year highs driven by strong demand for Grade A office parks.

Developers are responding with new supply featuring ESG-aligned buildings, improved air systems, and smart-workspace technology - attributes that modern occupiers increasingly consider essential. With India emerging as a global hub for engineering R&D and GCC operations, leasing momentum remains strong.

• Bengaluru
• Delhi NCR
• Mumbai
• Pune
• Hyderabad

Future Outlook

Experts forecast continued growth over the next two years, powered by rising offshore investments, workforce expansion, and sustained demand for Grade A commercial spaces. With a maturing tech ecosystem and rapid infrastructure upgrades - including metro expansions and improved airport connectivity - the outlook for India’s office market remains highly promising. Investors view the sector as one of the strongest performing commercial asset classes in the Asia-Pacific region.

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