India’s office property market closed calendar year 2025 on a stable footing, with overall leasing activity matching the previous year despite persistent global economic uncertainty. According to a new industry assessment, gross office space absorption across the country’s six largest cities reached 75.2 million sq ft, underlining the sector’s structural resilience and its continued importance to urban employment and economic growth.
Market data show that Bengaluru, Delhi NCR and Mumbai remained the principal engines of demand, together accounting for nearly three-fifths of all office leasing during the year. Industry experts attribute this concentration to the depth of talent, infrastructure maturity and access to global capital in these cities, which continue to attract multinational occupiers even during cautious business cycles. While headline demand held steady, the composition of occupiers revealed a shift towards measured expansion. A senior real estate advisor noted that new market entrants and global capability centres played a defining role, reflecting India’s positioning as a long-term hub for technology, finance and knowledge-driven services. This trend has reinforced demand for Grade A assets that meet global standards on efficiency, sustainability and employee wellbeing. Overall Grade A office stock stood at approximately 846.9 million sq ft by the end of 2025 and is expected to cross 937 million sq ft in 2026 as new supply comes online. The supply pipeline remains strong, with fresh completions projected to increase significantly next year. While this may place temporary upward pressure on vacancy levels, analysts believe it will also improve choice for occupiers seeking high-quality, energy-efficient buildings in transit-connected locations.
City-level performance highlighted Bengaluru as the largest office market by absorption, although leasing volumes moderated compared to the previous year. Industry observers link this slowdown to delayed decision-making by global firms rather than a fundamental demand weakness. Delhi NCR and Mumbai followed closely, supported by diversified occupier profiles across technology, finance and professional services. Elsewhere, Hyderabad’s office market stood out for its strong dependence on global capability centres, which accounted for a significant share of leasing. Chennai and Pune continued to benefit from steady demand in engineering, manufacturing support and flexible workspace formats, indicating the broadening of India’s office economy beyond traditional IT clusters.
Looking ahead, total office demand is expected to remain around current levels in 2026, even as supply accelerates. Experts suggest rental growth will stay largely range-bound, with selective upside in well-connected micro-markets offering green buildings and inclusive workplace design. As Indian cities seek lower-carbon growth pathways, the office sector’s next phase is likely to be shaped not just by volume, but by how responsibly and efficiently space is delivered.
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India Leasing Steady At 75.2 Million Sq Ft In 2025 Bengaluru Leads
