India’s office market achieved a record high in 2025, with annual gross leasing reaching 86.4 million sq ft, a 20% increase year-on-year and 43% higher than the pre-pandemic peak in 2019. Real estate services firm Knight Frank India reported that residential sales in eight major cities remained stable at 348,204 units in 2025, showing a slight 1% decline from the previous year.
During the same period, new residential launches in the top markets totaled 362,184 units, down 3% year-on-year, with Mumbai contributing 29% of the sales at 97,188 units. The office market demonstrated strong activity, driven by sustained occupier demand, positioning India as a global leader in commercial real estate markets.
Knight Frank India’s International Partner, Chairman, and Managing Director, Shishir Baijal, highlighted the significance of the current cycle, stating that the rising annual leasing volumes signify a structural shift in how global and domestic enterprises perceive India as a long-term business destination. Bengaluru led the office market with a historic 28.7 million sq ft of leasing, while Delhi-NCR maintained its position as India’s second-largest office market in terms of total stock.
Global Capability Centres (GCCs) accounted for 38% of total absorption, with third-party IT services rebounding strongly by leasing 15.3 million sq ft, a 94% increase year-on-year. Flexible workspace operators also saw a record leasing of 18.6 million sq ft, marking a 19% surge year-on-year. Rental rates across all markets grew between 1% and 16% year-on-year in the second half of 2025, with Kolkata leading at 16% growth, followed by NCR and Hyderabad at 10% each.
