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India's office real estate market remained active in 2025, with the top six cities recording 56.8 million sq ft of gross absorption in the first nine months. Growth was largely driven by Global Capability Centres, IT-BPM, BFSI, and flexible workspace operators. While Q3 saw a 24% year-on-year dip due to a high base effect, total leasing is expected to surpass 75 million sq ft by year-end. Delhi-NCR and Bengaluru led activity, and vacancy rates gradually eased, reflecting strong occupier confidence and healthy market demand.
India's office real estate market maintained a steady pace in 2025, with 56.8 million sq ft of gross absorption across the top six cities during the first nine months, according to Savills India. The market activity was led by Global Capability Centres, contributing over 30% (5.9 million sq ft) of total leasing. Strong demand also came from IT-BPM, BFSI, and flexible workspace segments, reflecting sustained occupier confidence. Advertisement
New supply increased 9.6% year-on-year to 35.4 million sq ft, while the pan-India vacancy rate eased to 14%, indicating a healthy balance between demand and supply. The report projects that total leasing for 2025 could exceed 75 million sq ft by the year-end, underlining ongoing market growth.
During Q3 2025 (July-September), office absorption reached 17.9 million sq ft, a 24% year-on-year decline due to a high base effect. Delhi-NCR led with five million sq ft of leasing, followed by Bengaluru at 3.9 million sq ft and Pune at 2.8 million sq ft. Large deals measuring 100,000 sq ft and above accounted for 42% of leasing, highlighting occupiers' long-term expansion plans. Technology sector occupiers contributed 33% of transactions, while flexible workspace operators and BFSI accounted for 15% and 13% respectively.
Delhi-NCR and Bengaluru were responsible for 59% of new completions, adding six million sq ft in Q3. GCCs remained the dominant occupier group, contributing over 30% of total leasing, with Bengaluru, Pune, and Hyderabad collectively taking up 4.8 million sq ft.
Bengaluru continued to hold the top spot as India's largest commercial leasing hub, recording 14.6 million sq ft of gross absorption so far. Outer Ring Road and Peripheral East micro markets were the most active, contributing 40% and 21% of the city's absorption. Technology and flexible workspace occupiers led Q3 leasing, accounting for 52% and 22% of take-up.
Delhi-NCR showed strong performance with five million sq ft of gross absorption in Q3, including 3.5 million sq ft of fresh take-up and 1.5 million sq ft of pre-commitments. Year-to-date leasing reached 11.8 million sq ft, second only to Bengaluru. IT-BPM (32%) and flexible workspace operators (15%) were the largest contributors to the market.
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