India’s Office Market Set to Break Records with 90+ Million Square Feet Leasing in 2025
India's office real estate sector is on track to achieve a historic milestone, with gross leasing volume (GLV) expected to exceed 90 million square feet in 2025, driven by robust demand and strategic investments.
Office MarketReal EstateLeasing VolumeIndiaSustainabilityReal Estate NewsJul 07, 2025
The forecast, provided by leading real estate consultancy Cushman & Wakefield, highlights a significant surge in demand for office spaces across major cities in India. This surge is driven by several factors, including a robust economic recovery, a shift towards hybrid work models, and a growing emphasis on modern, sustainable office environments.
One of the key drivers of this growth is the increasing presence of multinational corporations (MNCs) and technology firms in India. These companies are expanding their operations and investing heavily in high-quality office spaces to attract and retain top talent. Additionally, the Indian government's initiatives to promote ease of doing business and infrastructure development have further bolstered investor confidence.
Mumbai, Bangalore, and Delhi NCR are expected to lead the charge, with these cities accounting for a significant portion of the total leasing volume. Mumbai, with its established business hub status, is projected to witness the highest demand, followed closely by Bangalore, known for its thriving tech ecosystem. Delhi NCR, with its large pool of skilled professionals and strategic location, is also set to see substantial growth.
The trend towards hybrid work models has also played a crucial role in shaping the office market. While many companies have embraced remote work, there is still a strong preference for physical office spaces, particularly for collaboration, innovation, and team building. This has led to a greater focus on creating flexible, collaborative, and tech-enabled office environments that cater to the evolving needs of the workforce.
Sustainability is another key driver of the office market's growth. With a growing awareness of environmental issues, there is a heightened demand for green, energy-efficient buildings. Many developers and landlords are investing in sustainable features such as solar power, energy-efficient lighting, and water-saving technologies to meet the needs of eco-conscious tenants.
Cushman & Wakefield's report also highlights the importance of location and connectivity in driving office demand. Well-connected business districts with easy access to public transport, amenities, and lifestyle options are more attractive to both companies and employees. This has led to a concentration of demand in well-established and emerging business hubs across the country.
Despite the positive outlook, the report cautions that challenges such as regulatory hurdles, land availability, and infrastructure gaps could pose obstacles to sustained growth. However, with the right policies and investments, these challenges can be overcome, paving the way for a vibrant and dynamic office market in India.
In conclusion, the Indian office market is on the cusp of a historic milestone, driven by a combination of strong economic fundamentals, strategic investments, and a focus on sustainability and connectivity. As the year progresses, the market is expected to continue its upward trajectory, solidifying India's position as a global real estate hotspot.
Cushman & Wakefield, a leading real estate services firm, provides comprehensive solutions for commercial real estate, including property management, leasing, and investment advisory services. With a global presence and a deep understanding of local markets, Cushman & Wakefield is well-positioned to offer valuable insights and support to clients in the Indian office market.
Frequently Asked Questions
What is the expected gross leasing volume (GLV) for India's office market in 2025?
The gross leasing volume (GLV) for India's office market is expected to exceed 90 million square feet in 2025.
Which cities are expected to lead the office market growth in India?
Mumbai, Bangalore, and Delhi NCR are expected to lead the office market growth in India, accounting for a significant portion of the total leasing volume.
What factors are driving the growth of the Indian office market?
The growth of the Indian office market is driven by factors such as the presence of multinational corporations, a shift towards hybrid work models, government initiatives, and a focus on sustainability and connectivity.
How is the trend towards hybrid work models impacting the office market?
The trend towards hybrid work models has led to a greater focus on creating flexible, collaborative, and tech-enabled office environments that cater to the evolving needs of the workforce.
What challenges could impact the growth of the Indian office market?
Challenges such as regulatory hurdles, land availability, and infrastructure gaps could pose obstacles to sustained growth, but these can be overcome with the right policies and investments.
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