India’s top seven cities lease over 55 mn sq ft of office space in 2025, up by 10% yoy on GCC-led demand
India’s top seven cities leased nearly 55.16 million sq ft (msf) in 2025, a 10% year-on-year increase from approximately 49.95 msf in 2024, despite headwinds such as IT sector layoffs and global tariff tensions, according to a report by ANAROCK.
Among cities, Bengaluru remained the largest office market, with a net leasing of approximately 14.15 million square feet in 2025. However, the IT hub saw a 5% decline from 14.87 million square feet (msf) in 2024, making it one of the few markets to record a contraction, along with Kolkata, which slipped 3% to around 1.15 msf, the report stated.
In contrast, Pune recorded the highest annual growth, with net absorption jumping 63% from 4.8 million sq ft in 2024 to nearly 7.8 million sq ft in 2025. Other key markets also reported healthy gains, with MMR up 15% at 8.23 msf, Chennai at 12% at 5.6 msf, Hyderabad at 9% at 8.11 msf, and NCR at 7% year-on-year with 10.12 msf of space leased.
The top seven cities include Bengaluru, Mumbai Metropolitan Region (MMR), Delhi NCR, Hyderabad, Chennai, Pune, and Kolkata.
Global Capability Centres (GCCs) emerged as the key growth driver, accounting for a record 41% share of gross leasing in 2025, up from 36% the previous year, as global firms continued to expand their operations in India.
“India’s office real estate market veritably boomed in 2025, with net absorption and new completions both surging thanks to the country’s robust economic growth,” said Peush Jain, MD – Commercial Leasing and Advisory, ANAROCK Group. He said that GCCs are “snapping up massive office spaces across key cities, drawn by India’s economic strength, stability, and cost advantages.”
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Supply rises by 8%
New office completions across the top seven cities increased 8% year-over-year (yoy) to approximately 51.83 million sq ft in 2025, compared with 48.11 million sq ft in 2024. Bengaluru led fresh supply additions with around 13.5 million sq ft, up 8% from 2024, ANAROCK said.
Pune saw a 103% jump in new supply to over 10.6 million sq ft, while Chennai’s supply rose 72% to 3.9 million sq ft, and NCR’s grew 46% to 8.65 million sq ft. Kolkata recorded the fastest growth at 317%, though in absolute terms, supply remained the lowest at just 0.13 million sq ft, it said.
In contrast, MMR and Hyderabad experienced sharp declines in new completions, down 35% and 39%, respectively, reflecting tighter pipelines in these markets.
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Vacancies ease, rentals climb 6%
The report stated that, with demand outpacing supply in key markets, office vacancy across the top seven cities decreased to 16.10% in 2025 from 16.50% in 2024. MMR’s vacancy fell to 14.70%, while Hyderabad, despite a marginal improvement to 26.30%, continued to have the highest vacancy level, followed by NCR at 21.70%.
Average monthly office rentals rose 6% to about ₹92 per sq. ft. in 2025 from ₹87 per sq. ft. a year earlier. Bengaluru saw the steepest increase of 9%, with rents touching ₹102 per sq. ft., while Pune and NCR recorded 6% rises. MMR and Chennai saw 5% growth, Hyderabad 4%, and Kolkata 3%.
Sector-wise, IT/ITeS remained the largest occupier with a 27% share of total leasing, followed by coworking at 23% and BFSI at 18%. Coworking demand rose by 2 percentage points over last year, while BFSI, consulting, and e-commerce each saw a 1% increase in their leasing share.
