India Office Market Holds Firm at 75.2 MSF in 2025: Savills India

New Delhi, December 29, 2025: The year-end office space absorption across India’s six major cities stood at 75.2 million square feet (msf), maintaining levels similar to the previous year, according to International Real Estate Advisory Firm Savills India. Bengaluru, Delhi-NCR and Mumbai emerged as the top three performing markets, collectively accounting for nearly 61 per cent of the gross leasing activity in 2025.

It is important to note that the figures presented pertain exclusively to fresh lease transactions and do not include pre-commitments or lease renewals.

“Despite global uncertainties, India’s office market ended 2025 on a firm and resilient note, with gross absorption touching 75.2 msf. The momentum was led by new entrants and expansionary demand from GCCs. Looking ahead to 2026, the market outlook remains positive, driven by GCCs, Technology & BFSI growth. While a strong supply pipeline could lead to a marginal rise in vacancy levels, it will also provide occupiers with access to high-quality spaces, keeping rental growth largely range-bound, with limited upside in select micro markets,” said Naveen Nandwani, MD, Commercial Advisory and Transactions, Savills India.

Highlights of 2025 for India Office Market

Bengaluru remained the top contributor to overall office leasing activity in India, accounting for 27 per cent of the total absorption in 2025, followed by Delhi-NCR with 18 per cent and Mumbai with 16 per cent share.

The IT-BPM and flexible workspaces occupiers led leasing activity, accounting for 34 per cent and 17 per cent of total absorption respectively, followed by BFSI sector contributing 15 per cent.

Large deals (100,000 sq. ft. or more) continued to lead office leasing in 2025, contributing 46 per cent to the total transaction volume.

Global Capability Centres (GCCs) continued to anchor demand in India’s office market, contributing 38 per cent of total leasing activity, equivalent to around 28 msf Bengaluru, Hyderabad and Chennai together accounted for nearly 20 msf of GCC-led leasing during the year, highlighting their continued attractiveness to global occupiers.

City-Wise Trends

Bengaluru led India’s office leasing with 20.2 msf in 2025, underpinned by sustained IT-BPM demand accounting for around 41 per cent of absorption, with ORR retaining its pre-eminence. GCCs accounted for nearly 59 per cent of the total leasing, reflecting sustained interest from global firms drawn by the city’s skilled talent base, mature business ecosystem, and steady Grade A supply. Leasing volumes moderated by around 12 per cent YoY, reflecting calibrated occupier expansion decisions and delayed deal closures amid global uncertainty.

Delhi-NCR recorded 13.6 msf of gross absorption in 2025, ranking second after Bengaluru. The IT-BPM and flexible workspace sectors continued to lead with 33 per cent and 15 per cent share respectively, in overall leasing. Large deals continue to hold dominant position with 49 per cent share.

Mumbai maintained peak gross absorption level of 12.1 msf second year in a row in 2025. As the third largest demand market, Mumbai leasing is dominated by financial services, technology and flexible workspace operators garnering a cumulative 56 per cent share.

Chennai achieved gross absorption of 9.1 msf, marking a 10 per cent annual growth, driven primarily by large and mid-sized deals. OMR Zone 1 led leasing activity with a 36 per cent market share, followed by PTR and MPR at 21 per cent and 17 per cent, respectively.

Hyderabad witnessed gross absorption of 11.4 msf, significantly driven by GCC deals which accounted for 43 per cent of the total gross absorption.

Pune recorded an all-time high absorption of 8.8 msf in 2025, up 4 per cent YoY, alongside record supply of 10.8 msf with 26 per cent YOY growth, led by strong demand from technology firms and flexible workspace operators.