India's office market is displaying strong performance, exceeding that of its global counterparts, supported by a robust economic outlook and sustained confidence among occupiers. This is according to Cushman & Wakefield (C&W), who project that gross leasing volume (GLV) in the country will surpass 90 million square feet by the end of 2025.

Strong Leasing Activity

The Indian office sector has demonstrated resilience and strength, with sustained leasing momentum and robust occupier demand across major cities. In the second quarter of 2025, GLV reached 21.4 million square feet in the top eight cities, a 5.4% increase quarter-on-quarter. While this represents a slight 0.8% decline compared to the same period last year, the overall trend remains positive. The first half of 2025 saw approximately 42 million square feet of gross leasing, putting the sector on track to exceed 90 million square feet for the year. Some experts predict that the India office market is set to cross the 1 billion square feet mark by Q3 2025.

Key Drivers

Several factors are contributing to the strong performance of the Indian office market. These include:

• Solid Economic Growth: India's economy is projected to grow between 6.4% and 6.7% in fiscal year 2025 to 2026. Morgan Stanley forecasts India to maintain its position as the fastest-growing economy, with real GDP growth at 5.9% in 2025 and 6.4% in 2026. This strong economic outlook is boosting business confidence and driving demand for office space.
• Growth in Key Sectors: Sectors such as technology (including AI, cloud computing and cybersecurity), BFSI (banking, financial services and insurance), and engineering are experiencing sustained growth, leading to increased demand for office space. The technology sector drove nearly 40% of all Grade A conventional office leasing in the first half of 2025.
• Expansion of GCCs: Global Capability Centers (GCCs) are rapidly scaling their operations in India, contributing significantly to leasing demand. In the first half of 2025, GCCs accounted for a record 27% of total leasing.
• Domestic Demand: Domestic firms are also demonstrating strong activity, contributing significantly to the demand for office space. This reflects corporate India's confidence in long-term growth prospects.

Regional Performance

Different cities are contributing to the overall growth of the Indian office market.

• Bengaluru: Bengaluru holds the largest share of India's office space, with 229 million square feet as of H1 2025. It leads pan-India GLV in Q2 2025, accounting for 23% share. The city's strong infrastructure, talent availability, and growing flex space demand sustain high occupier interest.
• Delhi NCR: The National Capital Region (NCR) has emerged as India's second-largest office market with 199 million sq ft in H1 2025. Upcoming projects like Noida Airport and RRTS are expected to boost leasing in the region.
• Mumbai: Mumbai's office stock stands at 169 million sq ft as of H1 2025, making it India's third-largest market. Demand for ESG-compliant offices and infrastructure projects support migration to Peripheral Business Districts.
• Pune: Pune has seen significant growth in new office completions, contributing significantly to the overall supply.
• Ahmedabad: Ahmedabad's office market has reached 41 million sq ft in H1 2025, registering the highest CAGR of 11.3% among India's top eight office cities.

Vacancy and Rentals

The office market across the top 8 cities saw an influx of 12.5 million sq ft of new completions in Q2 2025, a strong 53% increase year-on-year. Net absorption in Q2 2025 stood at 13.5 MSF, a 19% growth on an annual basis. Rents are seeing upward pressure in core districts across all major cities, led by Hyderabad and Mumbai, which posted a 15–16% growth year-on-year. Tight vacancy in cities like Bengaluru, Pune, Mumbai and Chennai is also driving rental increases.

Office REITs

India's Office REITs are performing well, recording over 15% capital appreciation in the past 12 months, surpassing the performance of the BSE Realty Index. Global Capability Centers (GCCs) are driving leasing demand in REIT assets.

Overall, the Indian office market is demonstrating strong growth and resilience, driven by a positive economic outlook, growth in key sectors, and increasing demand from GCCs and domestic firms. With leasing activity on track to surpass 90 million square feet in 2025, the sector is poised for a record-breaking year.