NEW DELHI: India’s office market achieved a record high in absorption during the first three quarters of 2025, with gross leasing reaching 59.6 million sq ft, marking the largest volume for this period, according to a recent report from CBRE South Asia.
The report indicates that technology firms, Global Capability Centres (GCCs), flexible workspace providers, and BFSI companies were the primary occupiers, collectively accounting for around 60% of total leasing.
“Looking ahead, continued leasing in premium assets is projected to compress vacancies, prompting occupiers to explore peripheral locations, driven by a surge in high-grade supply,” stated Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, at CBRE.
Bengaluru Leads; Mumbai and NCR Close Behind
Bengaluru retained its position as India’s most dynamic office market, contributing 25% (15.1 million sq ft) of total leasing from January to September 2025. Mumbai followed with 10.6 million sq ft, and Delhi-NCR accounted for 10.2 million sq ft, with the three cities collectively representing over 60% of the country’s total office absorption.
GCCs continued to drive demand, representing 39% of total leasing in the first nine months. Bengaluru, Pune, and Delhi-NCR together captured 67% of the GCC-related activity, showcasing the ongoing consolidation of technology and innovation centers across India’s major office hubs.
Q3 2025: GCCs Drive Quarterly Activity
In the third quarter of 2025 (July–September), office leasing reached 19.9 million sq ft, spurred by strong occupier demand in key cities. Bengaluru led with a 22% share, followed by Mumbai (20%) and Delhi-NCR (19%).
GCCs remained the largest occupier category, leasing 7.5 million sq ft during this quarter, which accounted for 38% of total activity. In GCC-dominant markets, Bengaluru contributed 38%, Pune 25%, and Hyderabad 15%.
“GCCs will continue to play a crucial role in office absorption, representing approximately 35-40% of total leasing in 2025. Established companies are expected to occupy expansive integrated tech parks, while newcomers will likely leverage flexible workspaces. Although US firms lead the GCC sector, growing interest from EMEA and APAC occupiers is expected to broaden the demand,” noted Ram Chandnani, Managing Director – Leasing at CBRE.
10% Increase in Supply; Amplified Flight-to-Quality Trend
The office supply pipeline strengthened, rising 10% year-on-year to 41 million sq ft in the first nine months of 2025. Pune, Bengaluru, and Delhi-NCR accounted for 66% of new completions, highlighting developers’ focus on prominent growth corridors.
During Q3 2025, new supply reached 13.6 million sq ft, primarily consisting of green-certified, amenity-rich campuses aligned with occupiers’ “flight-to-quality” strategies.
“The year is expected to end with a stable pipeline of high-quality office stock, led by Bengaluru, Hyderabad, and Delhi-NCR,” added Magazine.
CBRE anticipates that India’s office market will sustain its growth trajectory throughout 2025, bolstered by steady occupier interest in premium developments, robust GCC activity, and increased institutional investment appetite.
