Office Leasing Surges 28% in Top 7 Indian Cities: JLL Report
Net office leasing in India's top seven cities witnessed a significant 28% increase to 40 million square feet between January and September, according to real estate consultant JLL India. This growth reflects robust demand across key metropolitan areas like Bengaluru, Delhi-NCR, and Hyderabad.
Office LeasingReal EstateNet AbsorptionJll IndiaCommercial PropertyReal Estate PuneOct 17, 2025
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.
Frequently Asked Questions
What is net absorption in office leasing?
Net absorption in office leasing is calculated as the new floor space occupied minus the floor space that became vacant. It is a key metric used to measure the demand for office spaces in a given market.
Which city saw the highest increase in net office leasing?
Delhi-NCR saw the highest increase in net office leasing, rising 50% to 9.89 million square feet from 6.60 million square feet.
Why did Mumbai's office leasing decline slightly?
Mumbai's office leasing declined slightly by 4.5% to 4.74 million square feet, which can be attributed to various factors such as market saturation and competition from other cities.
What factors contributed to the growth in office leasing in Hyderabad?
The growth in office leasing in Hyderabad can be attributed to the city's emerging tech ecosystem and favorable business environment, making it an attractive destination for tech and IT companies.
What is the significance of the net absorption metric for real estate investors?
The net absorption metric is significant for real estate investors as it provides insights into the health of the office market, helping them make informed decisions about investments and developments.
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