India's Office Market Soars to New Heights in 2025
India's office real estate sector is witnessing unprecedented growth, with 39.45 million sq ft leased in the first half of 2025, marking a 17.6% increase from the previous year. This robust performance is driven by global occupiers and domestic firms, signaling long-term confidence in the economy.
Office MarketReal EstateLeasingJll IndiaCorporate GrowthReal Estate NewsJul 07, 2025
The performance was buoyed by an exceptionally strong second quarter, where leasing volumes touched 20 million sq ft, marking the best second quarter ever. Global occupiers led the momentum, accounting for 61.5% of leasing volumes during the quarter, underscoring India’s growing stature as a global talent hub. Domestic firms also demonstrated strong activity, leasing 7.7 million sq ft.
“India's office market is defying global economic headwinds with remarkable resilience, as evidenced by record-breaking gross leasing of 39.45 million sq. ft in H1 2025—a robust 17.6% on-year increase,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. “With the top seven cities consistently delivering approximately 21 million sq. ft per quarter, India has cemented its position as a mission-critical destination in multinational corporations' global strategies.”
This exceptional performance, driven by global occupiers who account for 61.5% of quarterly transactions, according to him, puts the market on trajectory to surpass an unprecedented 80 million sq. ft annually. Bengaluru led demand for the fifth consecutive quarter, accounting for 37.6% of the quarter’s leasing activity, registering its second-highest quarterly volume after the fourth quarter of 2024. Delhi-NCR followed with a 20.8% share. All major cities recorded higher or stable year-over-year performance, except Kolkata.
“The technology sector's resurgence to a three-year high market share of 30.3% in H1, combined with GCC activity breaking all previous Jan-June period records, signals India's commercial real estate dynamics to be in a very healthy state,” said Rahul Arora, Head - Office Leasing & Retail Services, and Senior Managing Director (Karnataka, Kerala), India, JLL. “Tech firms have already taken up 9.1 million sq. ft in H1 2025—75% of their entire 2024 footprint—signaling a pivot toward innovation-driven expansion. The tech sector reclaimed a 30.3% share, with GCC activity reaching record highs.”
GCCs leased 13.85 million sq. ft in H1 2025—up 30.8% y-o-y—led by BFSI and manufacturing, which together made up 55.6% of their share. Bengaluru accounted for over 41% of total GCC demand. Net absorption rose 26.6% y-o-y in H1 to 23.9 million sq. ft—its highest level ever for the first half of any year. Q2 alone saw 11.13 million sq. ft in net absorption.
With average quarterly leasing at ~21 million sq. ft over the past year, India’s office market is on course to surpass 80 million sq. ft in 2025. Strong demand from GCCs, tech and BFSI sectors, paired with tight vacancy and active supply pipelines, point to sustained growth amid global headwinds.
Frequently Asked Questions
What is the total leasing volume in India's office market for H1 2025?
India's office market saw a gross leasing volume of 39.45 million sq ft in the first half of 2025.
Who led the leasing activity in H1 2025?
Global occupiers led the leasing activity, accounting for 61.5% of the leasing volumes.
Which city led the demand for office space in H1 2025?
Bengaluru led the demand, accounting for 37.6% of the quarter’s leasing activity.
What is the expected annual leasing volume for 2025?
The market is on track to surpass 80 million sq. ft in 2025.
Which sectors are driving the growth in the office market?
The tech sector and GCCs (Global Captive Centers) are the primary drivers, with the tech sector reclaiming a 30.3% market share and GCCs leasing 13.85 million sq. ft in H1 2025.
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