India's commercial real estate sector has witnessed a landmark year, with net office leasing across the top seven cities reaching an all-time high of 55 million sq ft in 2025. This signifies a 10% year-on-year increase from approximately 49.95 million sq. ft. in 2024, highlighting sustained demand for office spaces despite certain economic headwinds.
Several factors contributed to this growth. India's strong macroeconomic environment, stability, and cost advantages have attracted major US corporations to lease large office spaces in key cities. Furthermore, the increasing preference for high-quality assets and the expansion of Global Capability Centers (GCCs) have fueled the demand for Grade A office spaces.
The IT/ITeS sector continues to be a major driver, accounting for 27% of the total leasing in 2025. Coworking spaces followed closely with 23%, and the BFSI sector with 18%, which indicates a diversification of demand beyond the traditional tech tenants.
While most cities experienced growth, Bengaluru, the country's largest IT/ITeS hub, saw a 5% decline in leasing, from 14.87 million sq. ft. in 2024 to 14.15 million sq. ft. in 2025. However, it still recorded the highest new office supply during the year, adding approximately 13.5 million sq. ft. of new office space.
In terms of new office completions across the top seven cities, there was an 8% year-on-year increase, rising from about 48.11 million sq. ft. in 2024 to nearly 51.83 million sq. ft. in 2025. Pune recorded a significant 103% jump in new office completions, while Chennai also experienced strong growth. Conversely, Mumbai Metropolitan Region (MMR) and Hyderabad saw a contraction in new supply.
The average monthly office rentals also saw an increase of 6%, from Rs 87 per sq. ft. in 2024 to Rs 92 per sq. ft. in 2025.
Looking ahead, the office market outlook remains positive, with expectations of robust leasing activity in 2026. This will be supported by continued demand from GCCs, technology, BFSI firms, and flex space operators, along with the increasing adoption of flexible and managed workspace solutions and a focus on sustainable buildings.
