New Delhi:
India’s commercial real estate sector is witnessing a robust revival, with office space leasing activity in major cities recording a 55% year-on-year increase in the first quarter of 2025, according to a report released by Cushman & Wakefield. The report reveals that nearly 2.4 million square feet of office space was leased across key metros including Bengaluru, Mumbai, Delhi-NCR, Hyderabad, Pune, and Chennai.
The surge in leasing activity reflects renewed corporate confidence, improved economic conditions, and increased demand from sectors like Information Technology (IT), Banking, Financial Services and Insurance (BFSI), and new-age startups. Companies are expanding operations and also adapting hybrid work models that prioritize quality office spaces in prime business locations.
Bengaluru led the charts in leasing volume, followed by Hyderabad and Pune, indicating a preference for tech-driven hubs. Grade A commercial buildings and coworking spaces have attracted major interest from both domestic firms and global multinationals.
“Demand for high-quality and tech-enabled office infrastructure is driving the surge. Flexible workspaces and sustainability features are becoming major decision factors,” said a senior analyst at Cushman & Wakefield.
Interestingly, coworking operators have also contributed significantly to the leasing numbers, accounting for a sizable share of the new occupancies. Their popularity is rising due to flexible terms and lower upfront costs—particularly appealing to startups and mid-sized businesses.
While some businesses still maintain remote or hybrid work setups, the data signals a shift toward workplace reintegration, supported by rising hiring trends and expansion plans in urban hubs.
Experts believe this momentum may continue through 2025, with leasing activities expected to surpass pre-pandemic levels. Factors such as policy stability, digital infrastructure, and urban redevelopment projects will likely support further growth.
This report paints a promising picture for India’s commercial real estate sector, reinforcing the country's position as a preferred destination for global business operations.
