India’s office real estate sector concluded CY25 with its strongest performance to date, recording a net absorption of 61.4 million square feet across the top eight cities, marking a significant 25% year-on-year increase. Bengaluru and Delhi NCR led the activity with 14.4 million and 10.9 million square feet absorbed, respectively, followed by other major cities like Mumbai, Hyderabad, Pune, Chennai, Kolkata, and Ahmedabad.
Chennai and Delhi NCR experienced remarkable year-on-year growth rates of 187% and 82%, respectively, highlighting the strengthening market fundamentals and the increasing ability to attract expanding office demand. The gross leasing volume reached around 89 million square feet, with fresh leasing dominating nearly 80% of the activity and Global Capability Centres achieving a new high of 29.3 million square feet.
Anshul Jain, Chief Executive of Cushman & Wakefield, expressed optimism about India’s position in the global office market, citing GCC expansion, technology adoption, a diverse occupier base, and a vast talent pool as key strengths. The IT-BPM sector led leasing activity at 31%, while flexible workspace operators and BFSI and Engineering & Manufacturing sectors also made significant contributions.
Despite a record supply of office spaces, strong demand led to a notable reduction in vacancy levels, with an overall decline of 210 basis points year-on-year, the most significant drop on record. Rental growth was observed across all major cities, with Hyderabad and Mumbai leading at 12-14% year-on-year, followed by Ahmedabad, Delhi NCR, and Chennai in the 6-9% range.
