Mumbai: India’s office property market delivered its best performance ever in 2025, with total office leasing reaching a record 86.4 million square feet, according to Knight Frank India’s India Real Estate
– Office and Residential Market (H2 2025) report. Leasing activity grew 20 percent compared to the previous year, crossing the earlier high recorded in 2024.
The numbers also show how far the market has come since the pandemic. Office leasing in 2025 was 43 percent higher than levels seen in 2019, before Covid-19 disrupted workplace demand. This strong recovery highlights rising confidence among companies and India’s growing role as a global business and technology hub.
Bengaluru stays on top, other cities follow
Bengaluru remained India’s largest and most active office market in 2025. The city recorded 28 million square feet of leasing, its highest-ever annual figure. Hyderabad followed with 11.4 million sq ft, closely trailed by the National Capital Region (NCR) at 11.3 million sq ft.
Pune and Chennai also crossed the important 10 million sq ft mark, leasing 10.8 million sq ft and 10.1 million sq ft respectively. Mumbai came very close, with 9.8 million sq ft of office leasing during the year.
GCCs drive demand surge
Global Capability Centres (GCCs) were the biggest growth driver, accounting for 38 percent of total office absorption in 2025. Bengaluru alone captured nearly half of all GCC-related leasing, strengthening its position as India’s main centre for technology, research, and global operations.
Flexible workspace operators and third-party IT services firms also recorded their highest-ever annual leasing, showing strong demand from technology-focused businesses.
Supply trails demand, rents rise
While demand surged, new office supply could not keep pace. Office completions rose 9 percent year-on-year to 54.8 million sq ft in 2025, mainly in Bengaluru and Pune. This gap between demand and supply pushed rents higher across key markets. NCR and Hyderabad saw rents rise 10 percent, while Mumbai and Bengaluru recorded 6 percent growth each.
Outlook remains positive
More than 90 percent of leasing was in Grade A offices, as companies preferred modern, efficient, and sustainable buildings. With strong demand expected to continue into 2026 and limited new supply in the near term, India’s office market is likely to stay among the strongest globally.
