Gross leasing volume in India's office real estate rose 5 percent quarter-on-quarter (QoQ) to 21.4 million square feet across the top eight cities in Q2 2025, setting the stage to surpass last year’s record high.
According to Cushman & Wakefield’s Q2 India Office Market Report, leasing volume crossed 42 msf in the first half of the year, and the sector is on track to exceed 90 msf of annual leasing activity — a new record. Gross office leasing in 2024 stood at a record 89 msf across the top eight cities.
The report, released on July 7, highlighted that Bengaluru (5 msf), Delhi NCR (4.6 msf), and Mumbai (3.9 msf) collectively contributed around 63 percent of the Q2 CY2025 leasing volume. The remaining were Pune (3.3 msf), Chennai (2.2 msf), Hyderabad (1.7 msf), Kolkata (0.5 msf), and Ahmedabad (0.2 msf).
Net absorption, a key indicator of real estate demand in terms of expansion of occupied space in the market, stood at 13.5 msf in Q2, marking 19 percent year-on-year (YoY) growth, and totalled 27.8 msf for H1 2025. Delhi NCR (5.2 msf), Pune (4.3 msf), and Chennai (3.1 msf) posted their highest-ever half-yearly net absorption, reflecting long-term occupier confidence in the Indian office market, the report said.
Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield, said, “The market has seen strong momentum and is well on track to reach 90 msf this year, setting a new milestone for Indian real estate. With 42 million square feet already leased in H1, and a robust pipeline of active deals, it’s clear that demand remains broad-based and resilient.”
GCCs driving growth
The strong leasing numbers reflect the depth of demand from global and domestic occupiers, with Global Capability Centres (GCCs), IT-BPM firms, flex operators, BFSI, and engineering & manufacturing companies driving growth.
GCCs contributed 24 percent of overall leasing activity in the quarter at 5.1 msf, with Bengaluru and Pune (1.6 msf each) together accounting for around 63 percent. The report also highlighted that H1 2025 marked a historic high for GCC leasing in the first half of any year, with 11.4 msf.
“Our forecast of more than 90 msf of gross leasing this year reflects the sector’s structural strength, particularly as we see sustained growth in sectors like technology, BFSI, and engineering. The GCC segment continues to be a key driver of demand, contributing a record 27 percent of total leasing in H1,” Anshul Jain, Chief Executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield said.
New supply
The office market across the top eight cities saw 12.5 msf of new completions in Q2, a 53 percent increase YoY and a 17 percent QoQ growth. On a half-yearly basis, the new supply touched 23.3 msf, marking a 14 percent YoY growth.
Bengaluru, Pune, Mumbai and Chennai are witnessing tight vacancy rates, putting an upward pressure on rents. Rents rose in core districts across all major cities, led by Hyderabad and Mumbai, which posted a 15–16 percent YoY increase, according to the report.
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