Bengaluru, India’s prominent office market, saw a 28% decline in gross office space leasing to 48.6 lakh square feet during January-March 2025, according to Cushman & Wakefield data. This is compared to 67.4 lakh square feet in the previous year. Net leasing of office space also declined by 33% to 24.9 lakh square feet from 36.9 lakh square feet.
Despite the decline, Bengaluru witnessed a 52% rise in new supply of office space to 32.8 lakh square feet. The vacancy rate for office spaces stood at 9.7% in the first quarter.
In contrast, across eight major cities, gross leasing of office space rose 4.5% to 202.9 lakh square feet, and net leasing grew 20% to 134.4 lakh square feet. “The momentum in India’s office sector has carried into Q1 2025, supported by steady closures of large deals and robust fresh leasing activity,” said Anshul Jain, CEO – India, SEA & APAC Tenant Representation at Cushman & Wakefield.
The eight cities tracked were Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Pune, Hyderabad, and Ahmedabad.
