Office space absorption in six major Indian cities reached 75.2 million sq. ft. by the end of 2025, maintaining levels similar to the previous year. Bengaluru, Delhi-NCR, and Mumbai emerged as the top three performing markets, collectively representing nearly 61% of the gross leasing activity in 2025.
The report forecasts that total demand is projected to reach 75 million in 2026, with the supply expected to increase from 58.2 million in 2025 to 90.8 million next year. The leasing figures cover fresh lease transactions and exclude pre-commitments and lease renewals.
In 2025, the overall Grade A stock stood at 846.9 million sq. ft., with a projected increase to 937.7 million in 2026. Naveen Nandwani, MD of Commercial Advisory and Transactions at Savills India, noted that despite global uncertainties, India’s office market ended 2025 on a firm and resilient note, driven by new entrants and expansionary demand from GCCs.
Looking forward to 2026, the market outlook remains positive, fueled by GCCs, Technology & BFSI growth. While a strong supply pipeline may lead to a slight rise in vacancy levels, it will also offer occupiers access to high-quality spaces, keeping rental growth largely range-bound with limited upside in select micro markets, according to Nandwani.
City-level data revealed that Bengaluru led with 20.2 million sq. ft. of gross absorption, followed by Delhi-NCR at 13.6 million and Mumbai at 12.1 million. The IT-BPM and flexible workspace sectors continued to dominate with 33% and 15% share in overall leasing, respectively.
Chennai, Hyderabad, and Pune recorded 9.1 million, 11.4 million, and 8.8 million sq. ft., respectively. Hyderabad’s leasing was notably boosted by GCC deals, accounting for 43% of the total gross absorption.
