India’s office real estate market has shown remarkable resilience, with 56.8 million sq ft of gross absorption recorded across top six cities in the first nine months of 2025. This strong demand is expected to drive the market to surpass the previous annual record of 75 million sq ft by year-end. Global Capability Centres (GCCs) remained key demand drivers, contributing over 30% of total leasing, with Bengaluru, Pune, and Hyderabad being key contributors. New supply rose 9.6% year-over-year to 35.4 million sq ft, while the vacancy rate eased to 14%, reflecting strong absorption and steady market fundamentals.
The market’s growth is driven by consistent demand from IT-BPM, GCCs, BFSI, and flexible workspace operators. According to Naveen Nandwani, Managing Director, Commercial Advisory and Transactions, Savills India, “India’s office sector has shown strong resilience despite global headwinds. Consistent demand from IT, GCCs, and financial services continues to drive structural growth, with absorption likely to touch 75 million sq. ft. by the end of 2025.”
In Q3 2025, India recorded 17.9 million sq. ft. of office absorption, a 24% year-over-year decline, as leasing activity moderated following a strong first half. Delhi-NCR led quarterly leasing with 5 million sq ft, followed by Bengaluru (3.9 million sq ft) and Pune (2.8 million sq ft). Technology firms (33%), flexible workspaces (15%), and BFSI (13%) drove overall demand. Large deals (≥100,000 sq. ft.) comprised 42% of total transactions.
Bengaluru retained its lead as India’s largest office market with 14.6 million sq ft of year-to-date leasing, driven by technology firms and flexible workspace operators, which accounted for 52% and 22% of activity, respectively. Delhi-NCR followed with 11.8 million sq ft YTD leasing, supported by strong demand from IT-BPM (32%) and co-working operators (15%). Mumbai ranked third with 9.1 million square feet, led by continued expansion in the BFSI sector. Hyderabad recorded 7.5 million sq ft, driven by mid-sized deals, while Pune and Chennai each saw 6.9 million sq ft in YTD absorption, both posting modest 4% annual growth.
New office completions reached 35.4 million sq ft in 2025 so far, up nearly 10% from last year. Delhi-NCR and Bengaluru together contributed 59% of all new supply, reflecting their position as key corporate hubs. The office market is poised for robust year-end performance, driven by strong leasing from IT-BPM, GCCs, BFSI, and flexible workspaces, coupled with a controlled pace of new supply. Large-scale deals and Grade A office demand are expected to remain key market drivers, maintaining investor and occupier confidence through 2025.
Image Courtesy: Savills India
