India’s office real estate market delivered a historic performance in 2025, reaffirming the country’s position as one of the world’s most attractive destinations for commercial real estate investment. According to Cushman & Wakefield, net absorption touched a record 61.4 million sq ft, marking a 25% year-on-year growth. This surge was driven by India’s expanding services economy, increasing global outsourcing, and the rapid rise of Global Capability Centres (GCCs).
Bengaluru emerged as the top-performing office market, accounting for 14.4 million sq ft (23%) of total absorption, followed closely by Delhi NCR at 10.9 million sq ft (18%). Mumbai, Hyderabad, Pune and Chennai also registered strong leasing activity, reflecting a broad-based recovery across major cities. Notably, Chennai and Delhi NCR posted the fastest growth, recording 187% and 82% year-on-year increases in absorption, respectively — a strong indicator of renewed occupier confidence.
Leasing activity remained robust, with gross leasing volume (GLV) at nearly 89 million sq ft, matching the previous year’s peak. Almost 80% of this came from fresh leasing, showing that companies are actively expanding rather than merely renewing space. Bengaluru, Mumbai and Delhi NCR together contributed more than 60% of total leasing, making them the backbone of India’s office market.
One of the biggest drivers of this growth was the expansion of Global Capability Centres (GCCs), which leased a record 29.3 million sq ft, accounting for 33% of total demand. This reinforces India’s status as a global hub for technology, finance, R&D and back-office operations. Demand also diversified across IT-BPM, BFSI, engineering, manufacturing and flexible workspace operators, ensuring long-term stability for the commercial real estate sector.
In Gurugram and the wider Delhi NCR region, new-age office towers along NH-248A, Golf Course Extension Road (GCER) and emerging business corridors are playing a pivotal role in this growth. These micro-markets are witnessing a surge in Grade-A office developments, driven by excellent road connectivity, metro access, proximity to residential catchments and modern infrastructure. As more corporates seek sustainable, future-ready workplaces, these locations are fast becoming the next corporate and business hubs of North India.
With record office supply of 53 million sq ft, falling vacancies and rising rentals across cities, India’s office real estate market remains on a strong growth trajectory — making 2025 a defining year for commercial real estate, office investment, and corporate expansion in India.
Source: ETRealty.com - The Economic Times
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