Office leasing across top 8 cities clocks 48.9 mn sq ft in H1 2025; Bengaluru sees record absorption at 18.2 mn sq ft

Bengaluru led the market with its highest-ever half-yearly absorption of 18.2 million sq. ft. Global Capability Centres (GCCs) accounted for the largest share among occupier segments, contributing 39%, it noted.

Mumbai and Ahmedabad were the only markets that saw a drop in volumes in H1 2025, but this can be attributed largely to a pronounced base effect rather than any slowdown in these markets.

With H1 leasing already surpassing two-thirds of the 71.9 million sq. ft. recorded in all of 2024, gross leasing for the full year is projected to reach a new high of 80–90 million sq. ft., according to the consultant.

Office leasing was driven largely by Global Capability Centres (GCCs), which accounted for 55% of Bengaluru’s transacted volume. Notably, pre-commitments constituted 46% of the space absorbed in the city, highlighting the supply-demand gap in ready-to-occupy stock and the urgency among occupiers to secure future space, as per Knight Frank India’s flagship annual report India Real Estate – Office and Residential (January – June 2025) which was released on July 3.

Office leasing in Bengaluru almost doubled in Q1 2025

The gross leasing in Bengaluru more than doubled to 18.2 million square feet during January-June.

In Delhi-NCR, leasing rose 27.5% to 7.2 million square feet. Hyderabad witnessed a 16% growth in office leasing to 5.9 million square feet, while Chennai saw an increase of 68% to 5.1 million square feet. 

In Mumbai, the leasing of office space fell 5% to 5.5 million square feet. The gross leasing of office space in Pune grew 17% to 5.1 million square feet during the said period. In Kolkata, the absorption of office space rose 60% to 1.1 million square feet. However, the office leasing fell 51% in Ahmedabad to 0.8 million square feet during the January-June period, the report noted.

While leasing activities remained robust, new office completions recorded at 20.1 mn sq ft in H1 2025 registering a decline of 20% YoY. Office completions remained modest as development interest is just starting to veer meaningfully toward office spaces again after the prolonged boom in the residential market. 

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“The Indian office market scaled another record high in H1 2025, recording a remarkable 42% YoY growth. This performance is a testament to India’s resilient economic fundamentals and its growing prominence as a global business hub. The sustained demand for high quality office spaces owing to occupiers’ confidence, has propelled transaction volumes to historic highs. As we move forward, India’s strategic appeal and innovative spirit will continue to position it as a global leader in the office market,” said Shishir Baijal, chairman and managing director, Knight Frank India, said,