Real Estate
India's Office Leasing Surges to 83.3 Million Sq Ft in 2025, Led by Bengaluru and Mumbai
2026-01-13 · Geosquare
India’s office real estate market saw a robust performance in 2025, with gross leasing crossing 83.3 million square feet (msf), marking a 7.8% year-on-year increase from 77.2 million sq ft in 2024, according to a JLL report. The growth was primarily driven by Bengaluru, Delhi-NCR, Hyderabad, and Mumbai, with notable contributions from global firms, expanding Global Capability Centres (GCCs), and a surge in flex space absorption.
The fourth quarter of 2025 was particularly strong, recording a record leasing of 26.8 million sq ft. This surge was fueled by increased demand from global firms, the expansion of GCCs, and a significant rise in flex space absorption, which has become increasingly popular among businesses looking for flexible and cost-effective office solutions.
Bengaluru emerged as the leader, accounting for 24.1 million sq ft of gross leasing, a 9.8% increase over the previous year. Chennai followed with 8.7 million sq ft, up 9.7%, while Hyderabad achieved 11.7 million sq ft, marking an 8.9% rise. Mumbai posted one of the strongest growth rates at 13%, reaching 11.6 million sq ft, and Pune delivered the highest expansion among major markets with an 18.2% jump to 8.1 million sq ft. In contrast, Delhi NCR saw a decline of 1.6% to 17.4 million sq ft, and Kolkata contracted by 9.2% with 1.6 million sq ft of activity.
Net absorption also crossed 57 million sq ft for 2025, a 14.1% rise over the previous year. Bengaluru accounted for 37.2% of Q4 net absorption, followed by Hyderabad and Delhi NCR, supported by strong pre-commitments and fresh space take-up.
GCCs emerged as the dominant driver of demand, leasing a historic 31.4 million sq ft in 2025, a 13% year-on-year increase, accounting for 37.7% of total activity. Domestic occupier activity also strengthened, with Indian flex operators leasing about 18 million sq ft, their best-ever performance.
Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, noted that the entry of nearly 200 new GCCs over the past two years, and GCCs now representing approximately 50% of all active space requirements, combined with robust occupancies creating space constraints for large occupiers, signals strong portfolio expansion ahead.
Vacancy levels dropped to 15.2%, the lowest in five years, with core locations in major metros now registering tight, single-digit availability. Bengaluru saw vacancy fall to a four-year low, while Mumbai and Delhi NCR reported the lowest vacancy levels in over fifteen years.
Flex operators emerged as the top occupier segment for the second consecutive quarter, with a 26.6% share of Q4 leasing, ahead of tech at 21.2%. However, on a full-year basis, tech retained its position as the primary demand driver with a 25.8% share, followed by flex at 21.5%. The manufacturing, industrial, and BFSI segments contributed almost equally with 15.4% and 15.2% shares, respectively.
The combination of strong headcount growth, tight vacancies, and secular demand across segments suggested that India’s office leasing volumes could potentially surpass the 100 million sq ft milestone within the next two years, Das said. The report highlighted that demand from GCCs, both existing ones and new country entrants, remains strong, with nearly 200 new GCCs making their way into the country over the past two years. With GCCs making up about 50% of all active space requirements, driven by international banking and financial services players' appetite for offshore operational centres, complemented by the manufacturing sector dynamism fostered through strategic policy initiatives and strong tech research and development background, the growth runway remains intact.