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Office market set for record gross leasing of over 90 msf in 2025: Report
The strong leasing figures underscore sustained demand from both global and domestic occupiers, led by Global Capability Centres (GCCs), IT-BPM firms, flex space operators, BFSI, and engineering and manufacturing companies.
Anshul Jain, chief executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield, said: 'India's office market continues to outperform global peers, underpinned by a solid economic outlook and long-term occupier confidence. Our forecast of more than 90 million square feet of gross leasing this year reflects the sector's structural strength, particularly as we see sustained growth in key industries such as technology, BFSI, and engineering.'
Cushman & Wakefield noted that this momentum builds on 2024's historic performance of approximately 89 million square feet, with H1 2024 figures largely in line with this year's. With continued momentum, 2025 will mark the second consecutive year of over 85 million square feet in gross leasing, signalling the establishment of a new baseline for market performance.
In terms of cities, Bengaluru (5.0 million sq ft), Delhi NCR (4.6 million sq ft), and Mumbai (3.9 million sq ft) accounted for approximately 63 per cent of the total quarterly leasing volume. The remaining share came from Pune (3.3 million sq ft), Chennai (2.2 million sq ft), Hyderabad (1.7 million sq ft), Kolkata (0.5 million sq ft), and Ahmedabad (0.2 million sq ft).
Furthermore, net absorption reached 13.5 million square feet in Q2 2025, up 19 per cent year-on-year, totalling 27.8 million square feet in H1. Delhi NCR, Pune, and Chennai recorded their highest-ever half-yearly absorption, signalling strong long-term occupier confidence. Fresh leases made up 77 per cent of H1 2025 activity, continuing a trend since 2022. Pre-commitments rose to 10 per cent, indicating tightening supply and rising occupier urgency.
GCCs contributed 24 per cent of Q2 leasing at 5.1 million square feet, led by Bengaluru and Pune. H1 2025 saw a record 11.4 million square feet in GCC leasing, driven by IT-BPM and engineering and manufacturing. IT-BPM remained the top occupier with 34 per cent of Q2 demand, followed by flex operators (18 per cent), BFSI, and engineering and manufacturing sectors.
'The GCC segment continues to be a key driver of demand, contributing a record 27 per cent of total leasing in H1. These centres are maturing in complexity and scale, and India's deep talent pool and improving infrastructure continue to reinforce its positioning as a global hub. At the same time, we are seeing more diverse sources of demand from domestic corporates, financial institutions, and flex players. We expect this momentum to continue—buoyed by easing inflation, expected rate cuts, and the continued evolution of India as a strategic business location,' added Jain.
On the supply side, India's top eight office markets recorded 12.5 million square feet of new completions in Q2, marking a 53 per cent year-on-year and 17 per cent q-o-q rise. H1 2025 supply totalled 23.2 million square feet, a 14 per cent increase year-on-year, with Bengaluru and Pune accounting for over 60 per cent. Pune led with 4.8 million square feet in Q2, its highest half-year supply to date.
'The growth is being fuelled by a convergence of trends—expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms. But supply is lagging in core locations, creating a landlord's market. Occupiers looking for high-quality space need to act early, especially as pre-commitments are on the rise and rentals are climbing in prime markets,' said Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield.
Tight vacancy rates, due to demand outpacing supply, are driving rent growth, especially in Hyderabad and Mumbai, where rents rose 15–16 per cent year-on-year.
Gross Leasing Volume (MSF) Q2 2024 Q1 2025 Q2 2025 Q-O-Q % Change Y-O-Y % Change
Mumbai 4.5 4.3 3.9 -9% -13%
Delhi NCR 3.5 2.8 4.6 68% 31%
Bengaluru 5.5 4.9 5 2% -10%
Chennai 1.7 2 2.2 10% 25%
Pune 2.9 3.5 3.3 -6% 13%
Hyderabad 2.3 2.6 1.7 -33% -24%
Kolkata 0.8 0.3 0.5 103% -34%
Ahmedabad 0.3 0.1 0.2 130% -36%
PAN India 21.6 20.3 21.4 5% -1%
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