India’s office real estate market staged a strong rebound in 2025, with net absorption rising 25% year-on-year to 61.4 million sq ft across the top eight cities, driven by robust occupier demand and large-scale expansion by global firms. Southern markets such as Chennai, Bengaluru and Hyderabad led the growth, while Delhi-NCR also saw a sharp surge in leasing activity.

The momentum was underpinned by sustained GCC expansion, steady gross leasing volumes and a clear preference for high-quality office spaces, reinforcing India’s position as a global office hub.

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.

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.