Archive · 24 Aug 2025
Indian Commercial Office Leasing Surges in First Half of 2025
In the first half of 2025, India's office space market did very well, with companies renting 40% more space than the year before.
Bengaluru was the city where the most space was rented.
Pune saw a big jump in how much space companies took up.
More new office buildings were also built.
The cost to rent office space went up a little bit.
The IT and IT services sectors were the biggest renters.
India's commercial office real estate sector saw a 40% rise in leasing during the first half of 2025.
Bengaluru led in market absorption with 6.55 million square feet.
Pune experienced the highest growth, with a 188% increase in absorption.
New office supply increased by 25% to 24.51 million square feet.
Average rentals grew by 4% to Rs 88 per square foot per month.
- Who
- The IT-ITES sector, Global Capability Centres (GCCs) and co-working spaces.
- What
- Net office leasing surged 40% to 26.8 million sq ft across the top seven cities.
- When
- The first half of 2025.
- Where
- Across the top seven cities in India.
- Why
- Driven by GCC expansion and sustained corporate confidence.
- Net Leasing Growth
- 40% (year-on-year)
- Total Leasing Area
- 26.8 million sq ft
- Bengaluru Absorption
- 6.55 million sq ft
- Pune Absorption Growth
- 188%
- New Office Supply Growth
- 25% (24.51 million sq ft)
- Average Rental Growth
- 4% (Rs 88 per sq ft per month)
- Vacancy Rate
- 16.3%
- IT-ITES Market Share
- 29%