Office Leasing Surges 28% in Top 7 Indian Cities: JLL Report

Net leasing of office space increased 28% to nearly 40 million square feet during the January-September period across India's top seven cities, driven by improved demand, according to JLL India. The real estate consultant's data revealed that net leasing or absorption rose to 39.85 million square feet during the first nine months of 2025, up from 31.03 million square feet in the corresponding period of the previous year.

Net absorption is calculated as the new floor space occupied minus the floor space that became vacant. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied.

In Bengaluru, the net leasing of office space rose 31% to 10.55 million square feet from 8.05 million square feet. The city continues to be a leading hub for tech and IT companies, driving the demand for office spaces.

The net leasing in Delhi-NCR increased 50% to 9.89 million square feet from 6.60 million square feet. This growth can be attributed to the city's strategic location and robust infrastructure, making it an attractive destination for a variety of businesses.

In Hyderabad, the net absorption went up 25% to 5.45 million square feet from 4.34 million square feet. The city's emerging tech ecosystem and favorable business environment have contributed to this increase.

Pune saw a 43% increase in net leasing to 4.51 million square feet from 3.15 million square feet. The city's growing industrial and tech sectors have been key drivers of this growth.

Chennai witnessed a rise of 38% to 3.95 million square feet from 2.87 million square feet. The city's strong manufacturing and IT industries have played a significant role in boosting office space demand.

However, the net leasing in Mumbai fell 4.5% to 4.74 million square feet from 4.96 million square feet. Despite this slight decline, Mumbai remains a crucial financial and commercial hub.

Lastly, the net leasing in Kolkata dipped 28% to 0.76 million square feet during January-September 2025 from 1.07 million square feet in the year-ago period. This decrease can be attributed to various factors, including economic slowdown and competition from other cities.

Overall, the positive trend in office leasing across major Indian cities indicates a strong recovery and growth in the commercial real estate sector. Real estate consultants and market analysts are optimistic about the continued demand for office spaces in the coming years.