India Office Market Hits Historic High with 59.6 Million Sq. Ft. Absorption in 9M 2025

India Office Market Hits Historic High with 59.6 Million Sq. Ft. Absorption in 9M 2025

India’s commercial real estate sector continues its record-breaking momentum. The country’s office market achieved a historic absorption of 59.6 million sq. ft. during the first nine months of 2025 — the highest-ever volume recorded for this period.

According to the latest industry data, Bengaluru led the leasing activity, followed by Mumbai and Delhi-NCR, driven primarily by Technology Companies, Global Capability Centres (GCCs), Flexible Workspaces, and BFSI occupiers. Collectively, these sectors contributed nearly 60% of the total leasing activity across India.

Key Highlights

• Total Gross Absorption: 59.6 million sq. ft. (Jan–Sep 2025)
• Top 3 Markets: Bengaluru (15.1 mn sq. ft.), Mumbai (10.6 mn sq. ft.), Delhi-NCR (10.2 mn sq. ft.)
• GCC Share: 39% of total leasing activity
• New Supply: 41 million sq. ft. (up 10% YoY)

City-Wise Market Performance

Bengaluru remained India’s most dynamic office hub, accounting for 25% of total leasing. With 15.1 million sq. ft. absorbed, the city continues to attract global tech and innovation firms.
Mumbai followed with 10.6 million sq. ft., supported by strong demand from BFSI and consulting sectors, while Delhi-NCR stood close behind at 10.2 million sq. ft., driven by diverse occupier interest and expanding GCC footprints.

Together, these three cities represented over 60% of India’s total office absorption in 2025’s first three quarters.

Q3 2025 Momentum: GCCs Continue to Anchor Demand

In Q3 2025, total office leasing stood at 19.9 million sq. ft., reflecting continued occupier confidence.

• Bengaluru led the quarter with a 22% share,
• followed by Mumbai (20%) and Delhi-NCR (19%).

Global Capability Centres (GCCs) dominated quarterly activity, leasing 7.5 million sq. ft. — nearly 38% of total demand.
Bengaluru, Pune, and Hyderabad were top GCC destinations, together contributing 78% of GCC-driven leasing.

The segment is expected to maintain a 35–40% share of total absorption through 2025, with established players expanding in integrated tech parks and new entrants leveraging flexible workspaces.

Rising Supply and the ‘Flight-to-Quality’ Trend

India’s office supply pipeline also expanded by 10% year-on-year, reaching 41 million sq. ft. during 9M 2025.
Pune, Bengaluru, and Delhi-NCR contributed two-thirds of new completions, emphasizing developers’ focus on high-growth micro-markets.

Q3 2025 alone saw 13.6 million sq. ft. of fresh supply, largely comprising green-certified, amenity-rich campuses — a testament to the growing flight-to-quality trend among occupiers.

The year is projected to close with a strong pipeline of premium-grade developments, especially across Bengaluru, Hyderabad, and Delhi-NCR.

Estate Masters India Insight

The data reinforces India’s position as one of the most resilient and opportunity-rich commercial markets globally.
Key takeaways include:

• Sustained GCC expansion as a long-term growth driver.
• Strengthening preference for Grade A and sustainable developments.
• Institutional capital interest deepening in core office assets.
• Expanding occupier activity in peripheral business districts due to high-grade supply influx.

At Estate Masters India, we view this momentum as a reflection of the maturing investment landscape, with quality, compliance, and innovation now shaping occupier strategies across markets.

Outlook 2025 and Beyond

With the continued expansion of global firms, strong domestic corporate activity, and the steady inflow of institutional investments, India’s office market is poised to sustain its growth trajectory into 2026.

Premium asset demand, GCC-led absorption, and developer adaptability are expected to remain the key forces driving this momentum.

📊 Estate Masters India
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