India’s office sector closed 2025 with its strongest performance on record, registering net absorption of 61.4 million square feet (MSF) across the top eight cities, according to Cushman & Wakefield’s Office Q4 MarketBeat report. This marks a robust 25% year-on-year (YoY) increase, reflecting strong occupier confidence and the market’s ability to deliver scale and resilience amid evolving business needs.
*Net absorption is a key indicator of real estate demand, representing the net change in occupied office space.
At the city level, Bengaluru (14.4 MSF) and Delhi (10.9 MSF) dominated, contributing 23% and 18% to total net absorption, respectively, driven by increased activity across core business districts. They were followed by Mumbai (9.6 MSF), Hyderabad (9.1 MSF), Pune (8.2 MSF), Chennai (7.0 MSF), Kolkata (1.4 MSF) and Ahmedabad (0.8 MSF). Notably, Chennai and Delhi NCR recorded the sharpest YoY growth at 187% and 82%, respectively, underscoring strengthening market fundamentals and an increasing capacity to attract and absorb expanding office demand.
|
Net Absorption (MSF) |
2024 |
2025 |
Y-O-Y % Change |
|
Mumbai |
10.9 |
9.6 |
-12% |
|
Delhi NCR |
6.0 |
10.9 |
82% |
|
Bengaluru |
14.2 |
14.4 |
1% |
|
Chennai |
2.4 |
7.0 |
187% |
|
Pune |
5.0 |
8.2 |
65% |
|
Hyderabad |
7.9 |
9.1 |
15% |
|
Kolkata |
1.5 |
1.4 |
-5% |
|
Ahmedabad |
1.2 |
0.8 |
-28% |
|
PAN India |
49.1 |
61.4 |
25% |
Leasing Activity and Sectoral Trends
The record net absorption was supported by robust leasing activity and healthy supply additions, catering to growing demand across markets. Gross Leasing Volume (GLV) stood at ~89 MSF, matching last year’s record high and signaling sustained, long-term confidence in India’s office market growth trajectory. This performance marks four consecutive years of consistent growth and the second consecutive year of record leasing, reinforcing India’s position as the office of the world.
*GLV, factors in all leasing activity in the market, including fresh take-up, open market renewals by occupiers as well as pre-leasing, and is an indication of overall market activity.
Fresh leasing remained the primary demand driver, accounting for nearly 80% of annual GLV, underscoring occupiers’ commitment to scaling operations and sustained preference for premium office spaces. Bengaluru (~22 MSF), Mumbai (~17 MSF) and Delhi NCR (~16 MSF) continued to anchor leasing activity, together accounting for a dominant 62% share of annual GLV. They were followed by Hyderabad (12.4 MSF), Pune (9.9 MSF), Chennai (9.0 MSF), Kolkata (1.7 MSF) and Ahmedabad (0.9 MSF). Meanwhile, Delhi NCR and Chennai posted healthy YoY growth of 25% and 23%, respectively.
Gross Leasing Volume (MSF) 2024 2025 Y-O-Y % Change Mumbai 17.8 16.9 -5% Delhi NCR 12.7 15.8 25% Bengaluru 25.9 22.0 -15% Chennai 7.3 9.0 23% Pune 8.5 9.9 17% Hyderabad 12.3 12.4 1% Kolkata 1.7 1.7 1% Ahmedabad 1.8 0.9 -48% PAN India 88.0 88.7 1%
Global Capability Centres (GCCs) recorded a new leasing high of 29.3 MSF, accounting for 33% of total GLV, reflecting India’s role as a core hub in global enterprise location strategies.
From a sectoral perspective, IT-BPM retained its dominance, accounting for 31% of total leasing and registering its highest-ever annual leasing volume. Flexible workspace operators emerged as the second-largest demand driver with 15.3% share, a 9% YoY growth, while BFSI and Engineering & Manufacturing sectors remained key contributors with 15.1% and 14.3% share, respectively. This increasingly diversified demand base points to the resilience and depth of India’s office market.
Supply, vacancy and rental growth
Supply additions touched a record ~53 MSF, marking a 17% YoY increase, with Bengaluru and Pune together accounting for 49% of annual completions. After several years of subdued supply, new completions crossed the 50 MSF threshold for the first time, providing relief to occupiers and easing pressure in tight markets.
Despite record supply, strong demand led to significant vacancy compression, with overall vacancy declining by 210 basis points (bps) YoY, the steepest annual drop on record. All major cities reported a reduction in vacancy levels, except Pune and Ahmedabad. Pre-commitments also gained traction, particularly in prime markets with tightening vacancies, as occupiers sought to secure quality space ahead of project completion.
Rental growth was observed across all the top eight cities, led by Hyderabad and Mumbai (12–14% YoY), while Ahmedabad, Delhi NCR, and Chennai posted gains in the 6–9% range.
Anshul Jain, Chief Executive – India, SEA & APAC Office and Retail, Cushman & Wakefield, commented
“This year’s performance reflects more than record numbers; it signals a long-term growth trajectory anchored in strong fundamentals. Occupier confidence, deep structural demand, and continued infrastructure development will keep India at the forefront of global enterprise decision-making. With GCC expansion accounting for nearly one-third of total leasing, alongside rising technology adoption, a diversified occupier base and a vast talent pool, India is well positioned to maintain its leadership in the global office market through 2026 and beyond.”
Veera Babu, Executive Managing Director, Tenant Representation - India, Cushman & Wakefield, said:
“2025 has been a turning point for India’s office market in how demand is shaping the future of work. Bengaluru, Delhi NCR and Mumbai collectively accounted for more than half of net absorption, while the acceleration in Chennai signals the rise of new corridors of opportunity. Fresh leasing accounting for nearly 80% of activity underscores the sustained appetite for quality office spaces, as IT-BPM, GCCs, and flex operators redefine workplace strategies and create a more agile, collaborative ecosystem. As these strategies evolve and demand spreads into emerging micro-markets, India’s office sector will continue to adapt and deliver spaces that empower a dynamic, future-ready workforce.”
