India's office leasing jumps 40 pc in H1 2025, new supply jumps 25 pc: Report

IANS July 3, 2025 418 views

India's office market saw a 40% surge in leasing activity during H1 2025, reflecting strong economic momentum. New office supply also rose by 25%, with Bengaluru and Pune emerging as top performers. The IT/ITeS sector remained the biggest driver of demand, while Kolkata was the only major city to see a decline. Experts attribute the growth to India's economic stability and its appeal to global corporations.

"India continues to attract large-scale office leasing by global capability centres and US-based corporates." – Peush Jain, Anarock Group
India's office leasing jumps 40 pc in H1 2025, new supply jumps 25 pc: Report
New Delhi, July 3: India’s commercial real estate market witnessed strong growth in the first half of 2025, with net office leasing across the top seven cities rising by 40 per cent year-on-year (YoY), a new report said on Thursday.

Key Points

1

Bengaluru leads leasing with 6.55M sq. ft absorbed

2

Pune sees 188% jump in net absorption

3

IT/ITeS sector dominates demand at 29% share

4

Kolkata only city with 51% leasing decline

According to data compiled by Anarock Research, net office absorption grew from around 19.08 million sq. ft. in H1 2024 to approximately 26.8 million sq. ft. in H1 2025.

New office supply also increased by 25 per cent during the same period, reaching nearly 24.51 million sq. ft.

Experts say the strong office market performance reflects India’s steady economic growth and its rising global profile as a business destination.

Peush Jain, Managing Director, Commercial Leasing & Advisory at Anarock Group, said the country continues to attract large-scale office leasing by global capability centres (GCCs) and US-based corporates.

He also noted that India’s economic stability stands in contrast to policy uncertainty in the US, making it an increasingly attractive destination for long-term investments.

Bengaluru led the leasing activity with around 6.55 million sq. ft. of office space absorbed in H1 2025 -- a 64 per cent increase compared to 4 million sq. ft. in the same period previous year.

Pune stood out with the highest annual growth in net absorption, soaring by 188 per cent to 3.8 million sq. ft., up from 1.32 million sq. ft. the previous year.

Kolkata, however, was the only city among the top seven to see a decline in leasing, dropping 51 per cent to just 0.45 million sq. ft.

In terms of new office space completions, Bengaluru again took the lead by adding approximately 6.91 million sq. ft. in H1 2025, a 26 per cent rise from the previous year.

Pune posted an exceptional 533 per cent jump in new supply, going from just 0.9 million sq. ft. in H1 2024 to over 5.7 million sq. ft. this year, the report stated.

Sector-wise, the IT/ITeS sector continued to drive demand, accounting for 29 per cent of overall office leasing.

This was followed by the coworking sector at 22 per cent and BFSI at 18 per cent.

Reader Comments

P
Priya S
While the numbers look impressive, I hope this growth is sustainable. We need to ensure infrastructure keeps pace - traffic in Bengaluru is already unbearable! More offices mean more jobs, but also more pressure on city resources.
R
Rohit P
Pune's 188% growth is mind-blowing! Shows how tier-2 cities are becoming major business hubs. Much better quality of life compared to Mumbai or Delhi, plus lower costs. Smart move by companies shifting operations there.
K
Kavya N
Worried about Kolkata's decline though - why is the city falling behind? We need balanced regional development. Maybe state government should offer more incentives to attract businesses to eastern India too.
D
David E
As someone working in commercial real estate, these numbers confirm what we're seeing on ground. US companies are actively expanding GCCs in India - the talent pool here is unmatched at these price points. Big opportunity for local workforce!
S
Shreya B
The coworking sector at 22% is interesting! Post-pandemic, companies want flexible options. But hope this doesn't lead to job insecurity for employees. Need proper labor laws for this new work culture.

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India commercial real estate office leasing Anarock Research Bengaluru office market GCC leasing