India's Office Leasing Surges 40% in H1 2025

India’s commercial office real estate sector delivered exceptional performance in H1 2025, with net office leasing surging 40 percent year-on-year to reach 26.8 million sq ft across the top seven cities, compared to 19.08 million sq ft in H1 2024.

The growth was powered by the expansion of Global Capability Centres (GCCs) and strong corporate occupier confidence, setting the stage for sustained momentum through the rest of the year. Bengaluru retained market leadership, recording 6.55 million sq ft of absorption, a 64 percent YoY growth.

Key Highlights

• India’s office leasing rose 40 percent YoY to 26.8 Mn sq ft in H1 2025
• Bengaluru led, while Pune recorded 188 percent absorption growth
• GCCs, coworking, and BFSI drove demand amid stable rentals

Pune emerged as the fastest-growing market, with a staggering 188 percent increase in absorption and 533 percent jump in new supply. On the supply side, 24.51 million sq ft was delivered in H1 2025, reflecting a 25 percent YoY growth. The overall vacancy rate dipped to 16.3 percent, improving slightly from 16.7 percent a year ago, highlighting healthy market equilibrium. Despite robust demand, rentals stayed stable, rising just 4 percent YoY to INR 88/sq ft per month.

Peush Jain, MD - Commercial Leasing & Advisory, ANAROCK Group, says, “New office supply increased 25 percent to 24.51 million square feet, creating balanced market dynamics. Vacancy rates improved marginally to 16.3 percent, and average rentals grew 4 percent to INR 88 per square foot per month. The IT-ITES sector dominated with 29 percent market share, followed by co-working spaces at 22 percent.”

Large space take-ups dominated leasing activity, with 57 percent of all deals exceeding 0.1 million sq ft, up from 52 percent in H1 2024. Demand was led by GCCs, which leased 5.45 Mn sq ft in Bengaluru, 2.81 Mn sq ft in NCR, 2.77 Mn sq ft in Pune, 1.93 Mn sq ft in Hyderabad, and 0.95 Mn sq ft in Chennai. Co-working operators and BFSI also contributed strongly to leasing momentum.

Also Read: Top Southern Cities Dominate GCC Office Leasing with 64% Overall Share in Q1 2025

Overall, India’s office market in H1 2025 showcased robust fundamentals, stable pricing, and sustained occupier demand, cementing its position as one of the most resilient commercial real estate sectors globally.