In 2025, India’s office real estate market achieved a significant milestone, with an unprecedented 71.5 million square feet of Grade A leasing, marking a 6% increase from the previous year and highlighting robust occupier confidence. Leasing activity stayed strong in the top seven cities, with Bengaluru at the forefront at 22.1 million square feet, solidifying its status as the nation’s leading commercial centre. The year's final quarter stood out, recording a historic peak of 20.6 million square feet in leasing, underscoring ongoing demand from local and international tenants. Industry estimates indicate that total office leasing in major cities is projected to hit approximately 55.16 million square feet by 2025, representing an all-time high and suggesting a robust, structurally solid market as it approaches 2026.
Global Capability Centres (GCCs) played a crucial role in fostering this growth, representing a historic 41% share of total absorption, an increase from 36% the previous year. Attracted by India’s economic stability, skilled workforce, and cost efficiency, prominent multinational companies, especially from the US, broadened their presence in major markets. By sector, IT and IT-enabled services remained the backbone of demand, representing 27% of leasing. In contrast, the coworking sector bolstered its stance with a 23% share, highlighting changing workplace strategies and a desire for versatile spaces. BFSI represented 18% of total leasing, driven by consistent growth in major urban areas. Moreover, consultancy, e-commerce, and related services added to more widespread demand, strengthening the diversification in tenant profiles. India's office market is well-equipped for continued growth due to robust fundamentals, increasing GCC activity, and heightened demand for flexible and hybrid workspaces, solidifying its appeal to both global and local businesses.
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