India's Commercial Real Estate Surges Despite IT Sector Challenges
India’s office real estate market achieved historic levels in 2025, with net leasing across the country’s top seven cities recording approximately 55.16 million sq ft. This marks a 10 per cent increase compared with 49.95 million sq ft in 2024, according to data from ANAROCK Research. The growth underscores the resilience of urban commercial real estate despite global trade tensions and a slowdown in the domestic IT sector.
Global Capability Centres (GCCs) emerged as the primary drivers of this expansion, contributing 41 per cent of total gross leasing, up from 36 per cent in 2024. While Bengaluru, India’s IT hub, saw net leasing decline by 5 per cent to 14.15 million sq ft, cities such as Pune, Gurugram, Chennai, MMR, and Delhi NCR experienced robust growth. Pune recorded the steepest annual increase at 63 per cent, absorbing 7.8 million sq ft of office space, compared with 4.8 million sq ft the previous year.
New office completions also rose across major cities, with total supply increasing by 8 per cent to 51.83 million sq ft. Bengaluru led with 13.5 million sq ft of new space, whereas MMR and Hyderabad recorded supply declines of 35 per cent and 39 per cent, respectively. Pune, Chennai, Delhi NCR, and Kolkata reported significant growth, with Kolkata’s new completions rising 317 per cent to 0.13 million sq ft, highlighting nascent but accelerating development in the city.
Vacancy rates declined modestly, falling from 16.5 per cent in 2024 to 16.1 per cent in 2025. Cities with constrained new supply, such as MMR and Hyderabad, experienced sharper declines, with Hyderabad maintaining the highest vacancy rate at 26.3 per cent. Average monthly office rents increased 6 per cent nationwide, reaching INR 92 per sq ft. Bengaluru saw the highest rent growth at 9 per cent, followed by Pune and Delhi NCR at 6 per cent each.
Sector-wise, IT/ITeS retained dominance, accounting for 27 per cent of office space demand, while BFSI contributed 18 per cent, and coworking operators 2 per cent. Analysts noted that GCCs, financial institutions, and flexible workspace providers are mitigating volatility in IT-led leasing, providing a stabilising effect on the market. “The diversification of tenant demand, alongside sustainability-focused developments, is ensuring long-term resilience in India’s commercial property sector,” said an industry expert.
Looking forward, cities with expanding office markets are expected to prioritise energy-efficient, low-carbon design and health-oriented infrastructure. Urban planners emphasise that integrating sustainability and inclusivity in commercial developments will be essential to balancing economic growth with environmental stewardship.
