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India's office space leasing is projected to exceed 90 million sq ft in 2025, surpassing last year's record. In H1 2025, gross leasing reached 41.7 million sq ft across eight cities. Pune, Chennai, and Delhi-NCR saw growth, while Mumbai, Bengaluru, Hyderabad, Ahmedabad, and Kolkata experienced declines. Global Capability Centers (GCCs) remain a key driver, contributing 27% of total leasing. Despite varied city performance, the market shows structural strength and is expected to maintain momentum due to economic growth and strategic business expansion.
The Indian office market is expected to see its gross leasing of office spaces surpass a significant milestone during the full year 2025. This projection, by real estate consultant Cushman & Wakefield, impacts the nation's top eight cities, reflecting continued growth despite varied performance in the first half of the year. Advertisement
The gross leasing of office space in January-June 2025 stood at 41.7 million square feet across eight major cities. This compares to 41 million square feet in the year-ago period. During this time, gross leasing of office space increased in Pune, Chennai, and Delhi-NCR. However, office demand declined in Mumbai, Bengaluru, Hyderabad, Ahmedabad, and Kolkata. Cushman & Wakefield notes that the sector is firmly on track to exceed 90 million square feet of annual leasing activity this year, which would be a new benchmark.
Anshul Jain, Chief Executive for India, SEA & APAC Tenant Representation at Cushman & Wakefield, stated that India's office market continues to outperform global counterparts, driven by strong economic growth. He added that their forecast reflects the sector's structural strength, particularly with sustained growth in sectors like technology, BFSI (Banking, Financial Services, and Insurance), and engineering.
The GCC (Global Capability Center) segment continues to be a key driver of demand, contributing 27% of total leasing in the first six months of this year. Demand from domestic companies and co-working operators is also robust.
Veera Babu, Executive Managing Director of Tenant Representation, Cushman & Wakefield, stated that growth is fueled by a convergence of trends, including the expansion of existing occupiers, rapid scaling of GCCs, and the entry of new domestic and global firms. However, he pointed out that office supplies are lagging in core locations, creating a landlord's market. He added that occupiers looking for high-quality space need to act early, as pre-commitments are rising and rentals are climbing in prime markets.
Shesh Rao Paplikar, Founder & CEO of BHIVE Workspaces, stated there is a strong demand for high-quality workspaces, and the growing demand for managed flexible office space is also driving leasing activities.
Darshan Govindaraju, Executive Director of Vaishnavi Group, stated that the India growth story continues to shine with multinational corporations continuing to invest heavily to tap into the country's large talent pool, thereby consistently generating demand for Grade A commercial real estate properties. Jain expects this momentum to continue in the second half of the year, supported by easing inflation, expected rate cuts, and India's continued evolution as a strategic business location.
Source- PTI
5th Jun, 2025
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