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India Office Leasing Hits Record 82.6 Mn Sq Ft in 2025, Fueled by GCC Boom

India's office leasing market achieved a historic high of 82.6 million square feet in 2025, marking a 1% year-on-year increase. The demand was primarily driven by the technology sector, flexible workspace operators, and BFSI firms, with Bengaluru, Mumbai, and Delhi-NCR accounting for 61% of total absorption. Global Capability Centres (GCCs) were a major growth engine, accounting for 39% of leasing in the fourth quarter and are projected to drive 35-40% of absorption in 2026. The trend is supported by global firms expanding their Indian footprints to tap into specialized talent in AI, machine learning, and data analytics.

Key Points: India Office Leasing Hits Record High in 2025 | GCC Demand

  • Record 82.6 mn sq ft leased in 2025
  • GCCs drove 39% of Q4 leasing
  • Bengaluru, Mumbai, Delhi-NCR top markets
  • Tech sector to remain key driver in 2026
2 min read

India office leasing hits record 82.6 mn sq ft in 2025 led by GCC demand

India's office leasing reached a record 82.6 million sq ft in 2025, driven by tech, flexible workspaces, and surging Global Capability Centre demand.

"Global firms are poised to expand their footprints in India through their Global Capability Centres. - Anshuman Magazine, CBRE"

New Delhi, Jan 6

India's office leasing activity reached a record 82.6 million square feet in 2025, up roughly 1 per cent year‑on‑year, a report said on Tuesday.

The report from CBRE South Asia Pvt. Ltd. said that technology, flexible workspace operators and BFSI firms together drove around 60 per cent of the total leasing activity during the year.

Bengaluru, Mumbai and Delhi‑NCR together accounted for about 61 per cent of overall absorption even as Global Capability Centres (GCCs) remained a key growth engine accounting for around 39 per cent of leasing in Q4 2025.

"Global firms are poised to expand their footprints in India through their Global Capability Centres. These centres are projected to drive 35-40 per cent of total space absorption in 2026, with new growth expected from mid-market entities, global unicorns, and emerging sectors," said Anshuman Magazine, Chairman & CEO, India, South‑East Asia, Middle East & Africa at CBRE, said.

The firm forecasted that the tech sector is expected to continue driving India's office space absorption, focusing on hiring specialised talent in advanced domains such as artificial intelligence (AI), machine learning (ML), data analytics, and cloud computing.

The report mentioned that the office demand was driven by steady investment and the portfolio expansion strategies of global and domestic companies, underpinned by their ongoing digitisation efforts.

The real estate consulting firm said that quarterly leasing rose 15 per cent sequentially to 22.2 million square feet in October‑December, led by Bengaluru (24 per cent), Mumbai (22 per cent) and Delhi‑NCR (18 per cent).

Global Capability Centres took roughly 8.5 million square feet in Q4, with Bengaluru (accounting for 44 per cent share), Hyderabad and Delhi‑NCR ranking as the top GCC destinations.

While US companies remain the primary drivers of GCC demand, occupiers from the EMEA and APAC regions are increasingly establishing operations in India, influenced by the proven success of existing centres and the rapid growth of the country's digitally skilled talent pool.

- IANS

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Reader Comments

P
Priya S
Great to see the growth, but I hope this development spreads beyond just Bengaluru, Mumbai, and Delhi-NCR. Tier 2 cities like Pune, Chennai, and Ahmedabad also have great talent and infrastructure. More decentralization would ease pressure on metro real estate and traffic!
R
Rohit P
As someone working in a GCC in Hyderabad, I can confirm the pace is insane. New buildings coming up everywhere. The salary packages are getting very competitive too. It's a good time to be in tech in India.
S
Sarah B
The numbers are impressive, but what about the environmental impact of all this new construction? Are these buildings sustainable? Hope the focus is on green buildings and not just square footage.
V
Vikram M
Global companies setting up capability centres here is a huge vote of confidence in Indian talent. We're no longer just a back-office destination; we're doing core R&D and advanced tech work. Jai Hind!
K
Karthik V
While the growth is good, I'm concerned about the commercial real estate prices skyrocketing in these hubs. It will make it harder for smaller Indian startups and MSMEs to afford office space. The government should ensure a balanced ecosystem.

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