GCCs Drive Record 86.4 Mn Sq Ft Office Leasing in India for 2025

Bengaluru alone captured 47 per cent (15.2 mn sq ft) of GCC leasing activity. Overall annual gross leasing surged to 86.4 million square feet, registering a 20 per cent year-on-year (YoY) increase and surpassing the previous peak achieved in 2024.

The scale of activity also represented a 43 per cent rise over the pre-pandemic high recorded in 2019, highlighting the sustained expansion of occupier demand over the past four years, said the Knight Frank India report.

Bengaluru continued its dominance as the largest office market grossing 28 mn sq ft, a historic best for this market.

Hyderabad (11.4 mn sq ft), Delhi-National Capital Region (NCR) (11.3 mn sq ft), Pune (10.8 mn sq ft) and Chennai (10.1 mn sq ft) all crossed a 10 mn sq ft benchmark, with Mumbai (9.8 mn sq ft) narrowly missing the line, the findings showed.

"India's office market delivered an exceptional performance in 2025, decisively surpassing its previous peak and underscoring the depth and breadth of occupier confidence across the country. With annual leasing volumes rising more than 20 per cent year on year, the current cycle marks not just a numerical high but a structural shift in how global and domestic enterprises view India as a long-term business destination," explained Shishir Baijal, International Partner, Chairman and Managing Director.

The fact that five major markets recorded their highest-ever transaction levels, each crossing the 10 mn sq ft threshold, highlights the geographically diversified nature of this expansion, he noted.

Leasing activity during H2 2025 stood at 37.5 mn sq ft, second only to the exceptionally high absorption recorded in H1 2025 (January-June 2025) which was 48.9 mn sq ft.

Flex space took up 18.8 mn sq ft, representing 22 per cent share of total gross leasing in 2025. Third-party IT services took up 15.3 mn sq ft during the year, accounting for 20 per cent of the transacted area with its volumes growing 94 per cent YoY, the report noted.

All office markets recorded rental appreciation in 2025 mostly due to low availability of quality space, led by NCR and Hyderabad with 10 per cent growth each, followed by Mumbai and Bengaluru, both registering rental increases of 6 per cent.

- IANS