India's Office Market Surges Ahead: A Bright Spot in the Global Real Estate Sector
India's office market continues to outperform global peers, driven by a robust economic outlook and strong occupier confidence. Net leasing across eight major cities increased by 24% to 27.8 million sq ft in the first half of 2025.
Real EstateOffice MarketEconomic OutlookNet LeasingCushman WakefieldReal EstateAug 18, 2025
“India’s office market continues to outperform global peers, underpinned by a solid economic outlook and long-term occupier confidence,” said Anshul Jain, Chief Executive, India, SEA and APAC Tenant Representation at Cushman & Wakefield.
Net absorption, or leasing, tracks the net change in occupied office space in a market during a given period. City-wise, Bengaluru’s absorption slipped from 6.2 million sq ft to 6 million sq ft. Kolkata also reported a decline of 11%, with net leasing at 0.8 million sq ft against 0.9 million sq ft a year ago. Ahmedabad witnessed the sharpest fall, with demand plunging 94% to 0.1 million sq ft from 2.1 million sq ft.
On the other hand, Mumbai, Delhi-NCR, Pune, and Chennai registered strong growth. Net leasing in Mumbai rose 30% to 5.5 million sq ft from 4.2 million sq ft. Pune saw demand more than double to 4.3 million sq ft from 1.7 million sq ft. In Delhi-NCR, net absorption surged to 5.2 million sq ft from 2.9 million sq ft, while Chennai recorded a jump to 3.1 million sq ft from 1.7 million sq ft.
Hyderabad remained steady at 2.8 million sq ft, the data showed. The consultant also highlighted that new office supply across these markets grew 14% annually to 23.2 million sq ft in the January-June period of 2025.
Meanwhile, according to the latest report by Anarock, India’s most dynamic housing micro markets have delivered remarkable gains for both homeowners and investors between the end of 2021 and mid-2025. In some areas, property prices have nearly doubled; in others, rents have climbed at a pace that outstripped inflation by a wide margin. The twin forces driving this surge – strong employment-driven demand and steady infrastructure upgrades – have given rise to markets where both capital appreciation and rental values growth are driven by location dynamics, connectivity, and economic momentum.
Cushman & Wakefield, a leading real estate services firm, has been instrumental in providing strategic advice and solutions to clients across various sectors. The company's expertise in market analysis and trend forecasting has made it a trusted name in the real estate industry, helping businesses and investors make informed decisions in a rapidly evolving market landscape.
Frequently Asked Questions
What is net absorption in the office market?
Net absorption, or leasing, tracks the net change in occupied office space in a market during a given period.
Which cities saw a decline in net leasing?
Bengaluru, Kolkata, and Ahmedabad saw a decline in net leasing. Ahmedabad witnessed the sharpest fall with a 94% drop.
Which cities saw the strongest growth in net leasing?
Mumbai, Delhi-NCR, Pune, and Chennai registered strong growth. Pune saw demand more than double, while Mumbai and Delhi-NCR saw significant increases.
What factors are driving the surge in property prices and rents?
The surge in property prices and rents is driven by strong employment demand and steady infrastructure upgrades, creating markets with high capital appreciation and rental growth.
What is Cushman & Wakefield's role in the real estate industry?
Cushman & Wakefield is a leading real estate services firm that provides strategic advice and solutions to clients across various sectors, helping businesses and investors make informed decisions in the real estate market.
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