India’s office leasing jumps 40% in H1 2025 on strong GCC demand
Bengaluru was the leading city in terms of office space absorption in first half of 2025.
Leasing of commercial office space in India’s real estate sector rose 40% in the first half of 2025, driven by demand from global capability centres (GCC), according to a report by real estate services firm Anarock.
The total office space leasing across the country's top seven cities in the first half of 2025 touched 26.8 million square feet, up from 19.08 million square feet in the same period last year.
Bengaluru led the demand from GCCs with 5.45 million square feet leased, followed by the NCR (2.81 million sq. ft), Pune (2.77 million sq. ft), Hyderabad (1.93 million sq. ft), and Chennai (0.95 million sq. ft).
Peush Jain, MD, Commercial Leasing & Advisory, Anarock Group, said, “New office supply increased 25% to 24.51 million square feet, creating balanced market dynamics. Vacancy rates improved marginally to 16.3%, and average rentals grew 4% to Rs 88 per square foot per month. The IT-ITES sector dominated with 29% market share, followed by co-working spaces at 22%.”
According to Anarock, Bengaluru maintained market leadership with 6.55 million square feet of absorption, while Pune emerging as the fastest-growing market with 188% growth.
Market fundamentals remain healthy, supported by the expansion of global capability centres and sustained corporate confidence, positioning the sector for continued growth through 2025, the report said.
New office space supply stood at 24.51 million square feet in the first half of 2025, marking a 25% increase compared to the same period last year.
During this period, 57% of all office deals exceeded 0.1 million sq.ft, up from 52% in the first half of 2024, reflecting corporate preference for larger consolidated spaces.