India’s office real estate segment recorded a net absorption of 61.4 million sq ft (msf), a 25% year-over-year increase across the top eight cities.
Net office leasing increased in Bengaluru, Hyderabad, Pune, Delhi-NCR, and Chennai, while it declined in Mumbai, Kolkata, and Ahmedabad.
Net absorption rose sharply from 49.1 million sq ft in 2024 to 61.4 million sq ft in 2025, across India’s top eight cities.
According to the data, net office leasing in Chennai almost tripled to 7 million sq ft last year, from 2.4 million sq ft in the 2024 calendar year, representing an increase of almost 187%, as per the report.
Delhi-NCR witnessed a sharp 82% growth in net office leasing to 10.9 million sq ft in 2025, up from 6 million sq ft in the preceding year. Bengaluru witnessed a marginal rise in net office leasing to 14.4 million sq ft from 14.2 million sq ft in 2024, recording a 1% increase. In Hyderabad, the net leasing grew 15% to 9.1 million sq ft from 7.9 million sq ft.
However, Mumbai experienced a 12% decline in office demand, dropping to 9.6 million sq ft from 10.9 million sq ft.
“This year’s performance reflects more than record numbers; it signals a long-term growth trajectory anchored in strong fundamentals. Occupier confidence, deep structural demand, and continued infrastructure development will keep India at the forefront of global enterprise decision-making,” Anshul Jain, Chief Executive – India, SEA, MEA and APAC Office and Retail, Cushman and Wakefield, said
With GCC expansion accounting for nearly one-third of total leasing, alongside rising technology adoption, a diversified occupier base, and a vast talent pool, India is well-positioned to maintain its leadership in the global office market through 2026 and beyond, Jain said.
Leasing momentum stays strong, GCCs drive demand
The report said that the surge in net absorption was supported by robust leasing activity, with gross leasing volume holding steady at around 89 million sq ft, matching the previous year’s record.
Fresh leasing accounted for nearly 80% of total activity, highlighting occupiers’ commitment to expansion and preference for high-quality office spaces.
Bengaluru, Mumbai, and Delhi NCR together contributed about 62% of total leasing, while Hyderabad, Pune, and Chennai also posted healthy volumes. Global Capability Centres emerged as a key growth engine, leasing a record 29.3 million sq ft and accounting for one-third of total demand, reinforcing India’s position as a global enterprise hub.
Supply rises, vacancies tighten, rentals climb
Cushman and Wakefield said that office completions crossed the 50 million sq ft mark for the first time, with supply additions touching about 53 million sq ft, up 17% year-on-year. Rental growth was observed across all the top eight cities, led by Hyderabad and Mumbai (12-14% YoY), while Ahmedabad, Delhi NCR, and Chennai posted gains in the 6-9% range.
“Despite record supply, strong demand led to significant vacancy compression, with overall vacancy declining by 210 basis points (bps) YoY, the steepest annual drop on record. All major cities reported a reduction in vacancy levels, except Pune and Ahmedabad. Pre-commitments also gained traction, particularly in prime markets with tightening vacancies, as occupiers sought to secure quality space ahead of project completion,” the report said.
“Fresh leasing accounting for nearly 80% of activity underscores the sustained appetite for quality office spaces, as IT-BPM, GCCs, and flex operators redefine workplace strategies and create a more agile, collaborative ecosystem. As these strategies evolve and demand spreads into emerging micro-markets, India’s office sector will continue to adapt and deliver spaces that empower a dynamic, future-ready workforce,” Veera Babu, Executive Managing Director, Tenant Representation, Cushman and Wakefield, said.