NEW DELHI: By the end of 2025, India’s office market demonstrated stability, with gross leasing across six key cities reaching 75.2 million sq ft, consistent with the previous year, as reported by Savills India.
Bengaluru, Delhi-NCR, and Mumbai were the standout markets, collectively representing nearly 61% of the total office leasing activity.
Despite uncertainties in the global economy, demand showed resilience, bolstered by new market entrants and the expansion of global capability centers (GCCs). Savills projects a positive outlook for 2026, driven by sustained interest from GCCs, technology firms, and the BFSI sector, although the robust supply pipeline may slightly increase vacancy rates.
In 2025, Bengaluru led office leasing in India with 20.2 million sq ft, equating to 27% of the total absorption. The primary drivers were the IT-BPM sector and GCCs, which accounted for a significant portion of the leasing activity. However, leasing volumes declined by approximately 12% year-on-year, reflecting more cautious expansion strategies and delays in deal closures due to global uncertainties.
Delhi-NCR achieved 13.6 million sq ft of gross absorption, making it the second-top performer nationally. The IT-BPM and flexible workspace sectors were the main contributors, with a combined share of nearly 48%, while large transactions exceeding 100,000 sq ft made up nearly half of the leasing activities.
Mumbai sustained gross absorption at 12.1 million sq ft for the second consecutive year, with leasing primarily driven by the financial services, technology sectors, and flexible workspace providers, which together reflected 56% of total demand.
Other markets included Hyderabad, with 11.4 million sq ft in leasing driven by GCCs—responsible for 43% of absorption—and Chennai, which saw a 10% annual increase to 9.1 million sq ft, fueled by large and mid-sized transactions. Pune recorded a historic high of 8.8 million sq ft, marking a 4% YoY increase, largely supported by strong demand from tech companies and flexible workspace operators.
By sector, IT-BPM companies were the largest occupiers, accounting for 34% of total leasing, followed by flexible workspace providers at 17% and BFSI firms at 15%. Large transactions of 100,000 sq ft and above continued to dominate, making up 46% of total transaction volumes.
GCCs were pivotal to office demand, contributing to 38% of total leasing, approximately 28 million sq ft for the year. Bengaluru, Hyderabad, and Chennai alone accounted for nearly 20 million sq ft of GCC-led leasing, reinforcing their status as global office hubs.
Savills anticipates continued momentum in office leasing for 2026, driven by ongoing demand for high-quality office spaces, even as rental growth may remain stable with modest increases in select micro-markets.
