Leasing activity in India’s commercial office space market surged by 40% in the first half of 2025, driven primarily by the growing demand from global capability centres (GCCs), according to a report by Anarock. Across the top seven cities, total office space leasing reached 26.8 million square feet, compared to 19.08 million square feet during the same period in 2024. Bengaluru led the momentum with 5.45 million square feet leased by GCCs, followed by NCR (2.81 million sq. ft), Pune (2.77 million sq. ft), Hyderabad (1.93 million sq. ft), and Chennai (0.95 million sq. ft).
Anarock highlighted that new office space supply rose 25% year-on-year to 24.51 million square feet in the first half of 2025, ensuring balanced market dynamics. Vacancy rates improved slightly to 16.3%, while average rentals climbed 4% to Rs 88 per square foot per month. The IT-ITES sector accounted for the largest share of demand at 29%, followed closely by co-working operators with 22%, underscoring the changing nature of India’s office space usage.
Bengaluru continued to dominate overall absorption with 6.55 million square feet, while Pune emerged as the fastest-growing market with a remarkable 188% year-on-year growth. The report noted that market fundamentals remain strong, fueled by GCC expansion and corporate confidence, positioning India’s commercial real estate sector for sustained growth through the rest of 2025.
