Office Leasing Trends Remain Strong in Major Indian Cities in 2025

A recent report by real estate advisory firm Savills India has revealed that office leasing trends have remained robust across major Indian cities in 2025. The report specifically highlights the strong performance of Bengaluru, Delhi-NCR, and Mumbai, which together have emerged as the top three markets in the sector.

The resilience in office leasing is attributed to several factors, including the recovery of the Indian economy, the growing demand for flexible workspaces, and the increasing focus on technology and innovation. According to the report, these factors have collectively contributed to a stable and growing market for office spaces.

Bengaluru, often referred to as the 'Silicon Valley of India,' continues to lead the pack with a significant share of the total office leasing activity. The city's robust IT and tech industry, coupled with a young and skilled workforce, has made it an attractive destination for both domestic and international companies. The availability of high-quality infrastructure and a supportive business environment has further bolstered the city's appeal.

Delhi-NCR, the national capital region, has also shown strong performance, driven by the presence of multiple business districts and a diverse economic base. The region's strategic location and connectivity have made it a preferred choice for a wide range of industries, from finance and consulting to manufacturing and retail. The government's initiatives to improve infrastructure and promote business activities have also played a crucial role in boosting the office leasing market.

Mumbai, the financial capital of India, has maintained its position as a key market for office leasing. The city's established business ecosystem, coupled with its status as a global financial hub, has attracted a significant number of corporate headquarters and regional offices. The high demand for premium office spaces in areas like BKC, Bandra-Kurla Complex, and Nariman Point has driven the market forward, despite challenges such as high rental rates and limited availability.

The report also notes that while these three cities dominate the market, other cities like Hyderabad, Pune, and Chennai are showing promising growth. These cities are increasingly becoming popular destinations for companies looking to expand their operations or set up new offices. The availability of cost-effective solutions and a growing talent pool are key drivers for this trend.

Savills India's report underscores the importance of adaptability and innovation in the office leasing sector. The increasing adoption of flexible workspaces, co-working models, and tech-driven solutions has helped businesses navigate the challenges posed by the evolving work landscape. The report suggests that companies are increasingly prioritizing factors such as employee well-being, sustainability, and technological integration when making leasing decisions.

In conclusion, the steady performance of office leasing in major Indian cities in 2025 is a positive indicator of the resilience and potential of the Indian real estate market. As the economy continues to grow and businesses adapt to new trends, the outlook for the office leasing sector remains promising.

Background Information: Savills India is a leading real estate advisory firm with a strong presence in the Indian market. The company offers a wide range of services, including property management, investment advisory, and market research. Savills India's insights and reports are widely regarded as authoritative sources of information in the real estate industry.