Corporate, GCC expansion takes India office market to a new high in 2025

India office market posts record 61.4 msf absorption in 2025, powered by corporate and GCC expansion

• India's office real estate net absorption hit 61.4 msf in 2025, up 25% YoY.
• Bengaluru and Delhi-NCR led absorption, together accounting for over 40 percent
• Hyderabad and Mumbai saw rental growth rise 12-14% year-on-year.

Did our AI summary help?

India’s office real estate market capped 2025 on a high, with net absorption touching a record 61.4 million square feet (msf) across the top eight cities, a 25 percent jump from the previous year, real estate consultancy Cushman and Wakefield said in a report released on January 5.

The growth signals a rebound in occupier demand despite global economic uncertainty, market observers said.

The jump in leasing reflects renewed expansion by corporates, sustained demand from GCCs and technology firms, according to Cushman & Wakefield’s Office Q4 MarketBeat report said.

Bengaluru and Delhi-NCR led the surge, together accounting for over 40 percent of total absorption.

At the city level, Bengaluru (14.4 msf) and Delhi (10.9 msf) dominated, contributing 23 percent and 18 percent to net absorption, respectively, driven by increased activity across core business districts.

They were followed by Mumbai (9.6 msf), Hyderabad (9.1 msf), Pune (8.2 msf), Chennai (7.0 msf), Kolkata (1.4 msf) and Ahmedabad (0.8 msf).

Chennai and Delhi-NCR recorded the sharpest YoY growth at 187 percent and 82 percent,  underscoring strengthening market fundamentals and an increasing capacity to attract and absorb expanding office demand.

Anshul Jain, chief executive–India, SEA, MEA & APAC Office and retail, Cushman and Wakefield, said occupier confidence, deep structural demand, and continued infrastructure development would keep India at the forefront of global enterprise decision-making.

“With GCC expansion accounting for nearly one-third of total leasing, alongside rising technology adoption, a diversified occupier base and a vast talent pool, India is well positioned to maintain its leadership in the global office market through 2026 and beyond," he said.

Robust leasing and supply additions

The record absorption was supported by robust leasing and healthy supply additions, catering to growing demand across markets.

Gross Leasing Volume (GLV) stood at 89 msf, matching last year’s record high.

GLV factors in all leasing activity in the market, including fresh take-up, open market renewals by occupiers as well as pre-leasing and is an indication of overall market activity.

Bengaluru (22 msf), Mumbai (17 msf) and Delhi NCR (16 msf) continued to anchor leasing activity, together accounting for a dominant 62 percent share of annual GLV.

Supply additions touched a record 53 msf, marking a 17 percent YoY increase, with Bengaluru and Pune together accounting for 49 percent of annual completions.

Veera Babu, executive managing director, tenant representation, Cushman & Wakefield, said that fresh leasing accounting for nearly 80 percent of activity underscores the sustained appetite for quality office spaces, as IT-BPM, GCCs, and flex operators redefine workplace strategies and create a more agile, collaborative ecosystem.

Rental growth was sees in all the top eight cities, led by Hyderabad and Mumbai (12–14 percent YoY), while Ahmedabad, Delhi NCR, and Chennai posted gains in the 6–9 percent range.