India’s Office Space Leasing Surges 40% in H1 2025, GCCs Drive Demand

Across the country’s top seven cities, total office space leased reached 26.8 million square feet in H1 2025, up from 19.08 million square feet during the same period last year.

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PratidinTime News Desk
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Leasing of commercial office space in India’s real estate sector surged 40% in the first half of 2025, propelled largely by demand from global capability centres (GCC), according to a report by real estate services firm Anarock.

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Across the country’s top seven cities, total office space leased reached 26.8 million square feet in H1 2025, up from 19.08 million square feet during the same period last year.

Bengaluru emerged as the frontrunner, with GCCs leasing 5.45 million square feet, followed by the National Capital Region (2.81 million sq. ft), Pune (2.77 million sq. ft), Hyderabad (1.93 million sq. ft), and Chennai (0.95 million sq. ft).

Peush Jain, MD, Commercial Leasing & Advisory, Anarock Group, said, “New office supply increased 25% to 24.51 million square feet, creating balanced market dynamics. Vacancy rates improved marginally to 16.3%, and average rentals grew 4% to Rs 88 per square foot per month. The IT-ITES sector dominated with 29% market share, followed by co-working spaces at 22%.”

The report highlighted that Bengaluru maintained its market leadership with 6.55 million square feet of absorption, while Pune emerged as the fastest-growing city, registering 188% growth. Strong market fundamentals, underpinned by the expansion of GCCs and sustained corporate confidence, are expected to support continued growth in the office leasing segment throughout 2025.

New office space supply in H1 2025 stood at 24.51 million square feet, up 25% from the previous year. Meanwhile, 57% of all office deals during this period were for spaces exceeding 0.1 million sq. ft, compared to 52% in H1 2024, reflecting a corporate preference for larger, consolidated office spaces.

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Real Estate