India’s office real estate sector achieved a new milestone in 2025, with gross office leasing touching a record 86.4 million square feet, according to a report released by global property consultancy Knight Frank. The achievement reflects a 20 percent increase compared to the previous year and highlights a sustained recovery and expansion in the commercial property market.
The growth in office leasing was driven by strong demand across major metropolitan markets, including Bengaluru, Hyderabad, Mumbai, Delhi-NCR, Chennai, and Pune. These cities continue to serve as key business hubs, attracting both domestic and multinational companies. Bengaluru and Hyderabad, in particular, remained dominant due to their established technology ecosystems and availability of skilled talent.
Technology firms, global capability centres, and professional services companies were among the largest contributors to leasing activity. Global firms continued to expand their operations in India, drawn by cost efficiencies, a large talent pool, and improving infrastructure. Knight Frank noted that global capability centres accounted for a significant share of the absorption, reflecting India’s growing role in global business operations.
Another factor supporting leasing activity was the gradual normalization of office attendance. As hybrid work models stabilized, many companies reassessed their real estate needs and committed to long-term office spaces. This led to increased leasing of Grade A offices, particularly in well-connected business districts and technology parks.
The report also highlighted a rise in pre-commitments and large-format transactions, indicating greater confidence among occupiers. Companies were more willing to secure space in advance, anticipating future growth and workforce expansion. Additionally, improved quality standards and sustainability-focused developments enhanced the attractiveness of newer office assets.
From a supply perspective, developers responded to rising demand by accelerating project completions. New office supply remained largely concentrated in top cities, with a focus on energy-efficient buildings and modern amenities. Despite the increase in supply, vacancy levels in prime locations remained stable, suggesting a balanced market.
Knight Frank analysts observed that India’s macroeconomic stability, strong GDP growth outlook, and expanding services sector continue to support the office real estate market. Policy initiatives aimed at improving ease of doing business and infrastructure development also played a role in sustaining investor and occupier confidence.
Looking ahead, the consultancy expects office leasing activity to remain robust, supported by continued demand from technology-driven sectors and global firms. While geopolitical and economic uncertainties persist globally, India’s office market is expected to benefit from its long-term structural strengths.
The record leasing performance in 2025 underscores India’s position as one of the most dynamic office markets globally and reflects the evolving needs of businesses operating in the country.
