Advertisement
India's top six cities witnessed a 14% rise in net office space leasing during the 2024-25 fiscal, reaching an all-time high of 65 million square feet, as per ICRA. The leasing momentum is expected to continue through 2025-26, driven by strong demand from Global Capability Centres (GCCs), BFSI institutions, flex-space operators, and domestic IT-BPM firms. Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune were the key cities leading this growth. The April-June quarter alone accounted for 17 million sq ft of fresh absorption.
Net office space leasing in India's top six cities recorded a significant 14% year-on-year jump in the 2024-25 fiscal, reaching an unprecedented 65 million square feet, according to a recent update from ICRA. This leasing boom is being seen across major urban hubs Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region (MMR), and Pune driven by the growing footprint of Global Capability Centres (GCCs), Banking, Financial Services and Insurance (BFSI) entities, co-working space providers, and domestic IT-BPM firms. Advertisement
ICRA cited PropEquity data, highlighting that this surge marks a new high for net absorption across India's commercial office markets. In the first quarter of the current financial year alone (April-June), 17 million square feet have already been absorbed, indicating that the strong momentum from last year is continuing.
The rating agency expects the net office space absorption in 2025-26 to remain at the elevated levels achieved last fiscal. According to ICRA, the strength of leasing demand reflects the robust post-pandemic recovery of corporate India, especially in sectors like technology, financial services, and managed workspace providers, which continue to expand operations and workforce across metros.
The leasing demand from GCCs remains particularly noteworthy. These centres, often established by global firms to centralize operations in India, are significantly expanding their presence, thereby contributing a large chunk to the total leasing volumes. Similarly, the BFSI segment is witnessing a push for premium and well-connected office spaces in metro regions.
Another visible trend is the increased footprint of flexible office providers, which are catering to a growing preference for hybrid work models. These operators are leasing large spaces in key business districts to offer enterprise-grade solutions that blend flexibility with traditional office infrastructure.
The surge also points toward growing investor confidence in India's commercial real estate segment, especially with consistent demand being recorded quarter-on-quarter.
Source PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
