Office leasing touches 82.6 mn sq ft in 2025, led by Bengaluru, Mumbai and NCR
Office leasing across nine major Indian cities reached 82.6 million sq ft in 2025, a marginal 1% year-on-year increase driven by improved demand from domestic and foreign companies. Bengaluru, Mumbai, and Delhi-NCR led activity, together accounting for around 61% of total space absorption, a report by CBRE has said.
In the fourth quarter alone, leasing touched 22.2 million sq ft, with the same three markets driving demand. Technology, flexible spaces and BFSI corporates led absorption with a cumulative share of 60% in 2025.
GCCs continued to power India’s office market, capturing a 39% share in Oct-Dec 2025. Global firms are expected to expand their footprints in India through their Global Capability Centres (GCCs). These centres are projected to drive 35-40 per cent of total space absorption in 2026, the report titled, ‘CBRE India Office Figures Q4 2025’ said.
Looking ahead, the tech sector is expected to continue driving India’s office space absorption, focusing on hiring specialised talent in advanced domains such as artificial intelligence (AI), machine learning (ML), data analytics, and cloud computing.
The cities tracked by CBRE are Delhi-NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, and Kochi.
During the October-December quarter, the leasing activity increased by 15% quarter-on-quarter to touch 22.2 million sq. ft. This absorption was led by Bengaluru with a share of about 24%, followed by Mumbai (22%) and Delhi-NCR (18%).
Also Read: Net office leasing in top 8 cities up 25%, crosses 61 mn sq ft in 2025, led by Chennai and Delhi-NCR
Bengaluru continued to dominate leasing by GCCs
Of the total, GCCs accounted for a share of around 39%, leasing about 8.5 mn. sq. ft. in Q4 2025. Bengaluru continued to dominate leasing by GCCs, with a share of 44%, followed by Hyderabad (25%), and Delhi-NCR (13%).
While U.S. companies remain the primary drivers of GCC demand, occupiers from the EMEA and APAC regions are increasingly establishing operations in India, influenced by the proven success of existing centres and the rapid growth of the country’s digitally skilled talent pool.
Entrenched sectors, such as E&M and BFSI, are expected to remain active, while firms in niche industries such as life sciences, semiconductors, and automotive, are also likely to witness continued expansion. Furthermore, the flexible workspace market is set for robust growth as corporates increasingly integrate these spaces into their long-term growth strategies to enhance scalability, risk management, and cost efficiency, the report noted.
Also Read: Indian office space segment leased over 71.5 mn sq ft of space in 2025: Report
On the supply side, developers rushed to meet high demand in 2025, with total supply rising 5% Year-over-Year to 56.3 million. sq. ft. In line with the demand, developers are increasingly delivering fully amenitised, premium, green-certified office spaces that align with occupiers’ priorities regarding operational scalability, employee experience, and long-term business goals.
Moreover, sustainability has become a defining feature of premium office developments, with occupiers increasingly treating LEED and IGBC certifications as the minimum standard for meeting their ESG commitments. In 2026, a significant proportion of new supply is expected to be green-certified, underscoring the sector’s decisive shift towards environmentally responsible development, the report said.
Anshuman Magazine, chairman and CEO, India, South-East Asia, Middle East & Africa at CBRE, said India’s office market continues to demonstrate strong fundamentals despite a rapidly shifting global backdrop, marked by geopolitical uncertainties and challenges surrounding cross-border talent mobility.
“Global firms are poised to expand their footprints in India through their Global Capability Centres (GCCs), buoyed by the country’s inherent advantages, including a highly skilled talent pool and cost differentials. These centres are projected to drive ~35-40% of total space absorption in 2026, with new growth expected from mid-market entities, global unicorns, and emerging sectors. Despite existing uncertainties, global firms continue to view India as a strategic destination for their multi-functional hubs delivering innovation and enterprise leadership,” he said.
