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Net office leasing in the seven key markets increases 10 per cent year-on-year in 2025, up from about 49.95 million sq. ft. in 2024.
Office rentals continued to firm up, with average monthly rents rising 6 per cent year-on-year to Rs 92 per sq. ft. in 2025.
India’s office real estate market scaled new highs in 2025, with net absorption across the top seven cities rising to a record 55.16 million square feet, despite headwinds such as IT sector layoffs and global tariff-related uncertainties, according to data released by ANAROCK Group.
Net office leasing in the seven key markets increased 10 per cent year-on-year in 2025, up from about 49.95 million sq. ft. in 2024, signalling sustained occupier confidence and strong demand from global and domestic firms. Bengaluru continued to lead in absolute terms, clocking around 14.15 million sq. ft. of net absorption during the year. However, the city recorded a 5 per cent annual decline compared with 2024, when it had seen leasing of about 14.87 million sq. ft.
Among major markets, Pune posted the strongest growth, with net absorption surging 63 per cent to roughly 7.8 million sq. ft. in 2025 from about 4.8 million sq. ft. a year earlier. Mumbai Metropolitan Region (MMR), Chennai, Hyderabad and the National Capital Region (NCR) also reported healthy increases in net leasing of 15 per cent, 12 per cent, 9 per cent and 7 per cent, respectively. Kolkata, however, joined Bengaluru in recording a decline, with net absorption slipping 3 per cent year-on-year.
On the supply side, new office completions across the top seven cities rose 8 per cent annually to around 51.83 million sq. ft. in 2025, compared with 48.11 million sq. ft. in 2024. Bengaluru once again topped the chart, adding about 13.5 million sq. ft. of new office space during the year, an 8 per cent increase over the previous year.
Pune emerged as the fastest-growing market in terms of new supply, with completions more than doubling to over 10.6 million sq. ft. in 2025. Chennai and NCR also saw sharp rises of 72 per cent and 46 per cent, respectively. In contrast, MMR and Hyderabad were the only two cities to register a decline in new office supply, with additions falling 35 per cent and 39 per cent, respectively. Kolkata posted the highest percentage growth at 317 per cent, though in absolute terms supply remained minimal at just 0.13 million sq. ft.
Commenting on the trend, Peush Jain, managing director, commercial leasing and advisory at ANAROCK Group, said India’s office market “veritably boomed” in 2025, supported by robust economic growth. He noted that global capability centres (GCCs) emerged as a key demand driver, accounting for a record 41 per cent of gross absorption during the year, up from 36 per cent in 2024, as multinational corporations expanded their India footprint.
Sector-wise, IT and ITeS remained the largest occupiers, accounting for 27 per cent of total leasing in 2025, though their share declined marginally from the previous year. The coworking segment strengthened its position, capturing 23 per cent of leasing activity, while BFSI firms accounted for 18 per cent. Demand from coworking operators rose year-on-year, while BFSI, consultancy and e-commerce also saw modest gains in their respective shares.
Vacancy levels across the top seven cities edged down to 16.1 per cent in 2025 from 16.5 per cent in 2024. Reduced supply additions helped MMR and Hyderabad lower their vacancy rates, though Hyderabad continued to have the highest vacancy at 26.3 per cent, followed by NCR at 21.7 per cent.
Office rentals continued to firm up, with average monthly rents rising 6 per cent year-on-year to Rs 92 per sq. ft. in 2025. Bengaluru recorded the steepest increase at 9 per cent, followed by Pune and NCR at 6 per cent each, reflecting sustained demand for quality office spaces across major business hubs.
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December 24, 2025, 13:14 IST
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