Archive · 5 Jan 2026
India's Office Market Sees Record Growth in 2025
India's office real estate market had its best year ever in 2025.
A lot of new office space was used, especially in cities like Bengaluru and Delhi.
More companies are choosing flexible workspaces, and rent prices went up in most cities.
This growth is because many businesses are expanding and need more office space.
The biggest users of office space are tech companies, banks, and manufacturing businesses.
The market is doing so well that it's expected to keep growing in the future.
India's office market recorded its highest-ever net absorption of 61.4 MSF in 2025, a 25% YoY increase.
Bengaluru and Delhi NCR led in absorption, with Chennai and Delhi NCR showing the sharpest YoY growth.
Gross leasing volume reached near-record levels, with Global Capability Centres accounting for 33% of leasing.
Vacancy rates dropped significantly by 210 bps YoY, with rental growth observed across all top eight cities.
Flexible workspace operators saw a 9% YoY growth, highlighting the increasing demand for managed offices.
- Who
- India's office real estate sector, including developers and flexible workspace operators
- What
- Record net absorption and growth in office leasing
- When
- 2025
- Where
- Top eight cities in India: Bengaluru, Delhi NCR, Mumbai, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad
- Why
- Strong occupier confidence, evolving business needs, and increasing demand for flexible and managed workspaces
- Net Absorption
- 61.4 million square feet (MSF)
- Top Cities by Absorption
- Bengaluru (14.4 MSF), Delhi NCR (10.9 MSF), Mumbai (9.6 MSF), Hyderabad (9.1 MSF), Pune (8.2 MSF), Chennai (7.0 MSF), Kolkata (1.4 MSF), Ahmedabad (0.8 MSF)
- Gross Leasing Volume (GLV)
- 89 MSF
- Global Capability Centres (GCC) Leasing
- 29.3 MSF (33% of GLV)
- Vacancy Rate Change
- Decreased by 210 basis points (bps) YoY
- Rental Growth Leaders
- Hyderabad and Mumbai (12–14% YoY)
- Flexible Workspace Operators' Share
- 15.3% with 9% YoY growth
- Top Sectors by Leasing
- IT-BPM (31%), BFSI (15.1%), Engineering & Manufacturing (14.3%)
