Indian Commercial Office Market Surges to New Heights, Paving the Way for 2025
The Indian commercial office market is set to achieve a record high of 65-70 million square feet in 2025, driven by significant growth in major cities like Bengaluru and Hyderabad. The market is undergoing a major transformation with a shift towards occup
Indian Commercial Office MarketReal Estate TrendsFiccicolliers ReportSustainabilityReal Estate Investment Trust ReitReal EstateFeb 11, 2025
This projection comes after an impressive year in 2024, where the market saw record-breaking absorption of 66.4 million square feet, marking a 14% year-on-year growth.
The market has seen a fundamental shift from a supply-led to an occupier-driven approach, with three consecutive years of leasing volumes exceeding 50 million square feet.
Bengaluru has led the way with its highest-ever absorption of 21.7 million square feet in 2024, while Hyderabad experienced the strongest growth at 55%.
The traditional dominance of the technology sector in leasing has declined from 40-50% to 25%, making room for engineering and manufacturing firms, banking and financial services, and flexible workspace operators.
These sectors now collectively account for over half of Grade A office space uptake.
Flex spaces have particularly gained prominence in cities like Delhi-NCR, Hyderabad, and Pune.
Global Capability Centres (GCCs) have emerged as a major demand driver, with leasing surging 41% year-on-year to 25.7 million square feet in 2024.
Bengaluru captured 47% of GCC leasing, while Mumbai saw a remarkable fourfold increase in GCC uptake compared to 2023.
Frequently Asked Questions
What is the projected size of the Indian commercial office market in 2025?
The Indian commercial office market is projected to reach 65-70 million square feet by 2025.
What sector has seen a decline in its dominance in the office leasing market?
The technology sector's dominance in leasing has declined from 40-50% to 25%.
Which city has seen the highest growth in office leasing?
Hyderabad has registered the strongest growth at 55%. Bengaluru, however, led with the highest-ever absorption of 21.7 million square feet in 2024.
What percentage of new supply is expected to be green certified in the next 2-3 years?
Nearly 80% of new supply over the next 2-3 years is expected to be green certified.
What is the forecast for rental values in the Indian office market in 2025?
Average rental values are forecast to reach Rs100-110 per square foot per month in 2025.
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