NEW DELHI: In 2025, net office leasing in India’s top seven cities reached an unprecedented 55.16 million sq ft, marking a 10% year-on-year increase, according to Anarock Research. This growth came despite challenges like layoffs in the IT sector and global tariff issues.
For context, net absorption was approximately 49.95 million sq ft in 2024.
Bengaluru maintained its position as the largest office market, leasing about 14.15 million sq ft for the year. However, this represented a 5% decline in net absorption compared to 14.87 million sq ft in 2024. In contrast, Pune experienced the highest annual growth among the leading cities, with net leasing surging 63% to roughly 7.8 million sq ft, up from 4.8 million sq ft the previous year.
Kolkata noted a slight 3% decrease in net leasing at around 1.15 million sq ft. Meanwhile, the Mumbai Metropolitan Region (MMR), Chennai, Hyderabad, and the National Capital Region (NCR) saw year-on-year growth rates of 15%, 12%, 9%, and 7%, respectively.
Global Capability Centres (GCCs) significantly influenced office demand, representing a record 41% of gross leasing in 2025, up from 36% the year before. The IT/ITeS sector remained the largest occupier, contributing 27% of leasing, followed by coworking spaces at 23% and Banking, Financial Services, and Insurance (BFSI) at 18%. Demand from coworking operators grew by 2 percentage points year-on-year, with consulting and e-commerce sectors also seeing slight increases.
New office supply across these cities rose by 8% year-on-year to approximately 51.83 million sq ft in 2025, compared to 48.11 million sq ft in 2024. Bengaluru led this new supply with about 13.5 million sq ft completed during the year, reflecting an 8% annual increase.
Pune experienced a substantial 103% rise in new office supply, adding over 10.6 million sq ft in 2025. Chennai and NCR also saw significant increases in new supply, growing by 72% and 46%, respectively. Kolkata had the highest percentage growth at an impressive 317%, albeit from a lower base, contributing just 0.13 million sq ft.
In contrast, MMR and Hyderabad were the only markets to experience a decline in new supply, with drops of 35% and 39%, respectively, during the year.
Office vacancy rates across the top seven cities improved slightly to 16.10% in 2025, down from 16.50% in 2024, thanks to strong absorption and moderated supply in some markets. Vacancies decreased in both MMR and Hyderabad due to fewer completions, with Hyderabad continuing to have the highest vacancy rate at 26.30%, followed by NCR at 21.70%.
Average monthly office rents in the top cities increased by 6% year-on-year to ₹92 per sq ft in 2025, up from ₹87 per sq ft in 2024. Bengaluru saw the highest rental growth at 9%, while Pune and NCR both experienced increases of 6%. MMR and Chennai had rental hikes around 5%, whereas Hyderabad and Kolkata showed lower growth rates.
