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India's office sector reached a historic milestone in 2025, recording a net absorption of 61.4 million square feet (MSF) across the top eight cities. This performance represents a 25 per cent year-on-year increase and marks the strongest year on record for the sector, according to Cushman & Wakefield's Office Q4 MarketBeat report.
Net absorption is a key indicator of real estate demand, representing the net change in occupied office space. The growth in net absorption was primarily driven by Bengaluru and Delhi NCR. Bengaluru led the market with 14.4 MSF, followed by Delhi NCR at 10.9 MSF, with the two cities combined accounting for 41 per cent of the total national absorption. Chennai and Delhi NCR emerged as the fastest-growing markets, recording year-on-year growth rates of 187 per cent and 82 per cent, respectively. Other significant contributors included Mumbai at 9.6 MSF, Hyderabad at 9.1 MSF, Pune at 8.2 MSF, Chennai at 7.0 MSF, Kolkata at 1.4 MSF and Ahmedabad at 0.8 MSF. Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield, added, " Bengaluru, Delhi NCR and Mumbai collectively accounted for more than half of net absorption, while the acceleration in Chennai signals the rise of new corridors of opportunity. As these strategies evolve and demand spreads into emerging micro-markets, India's office sector will continue to adapt and deliver spaces that empower a dynamic, future-ready workforce." Gross Leasing Volume (GLV) for the year stood at approximately 89 MSF, matching the previous year's record high. Fresh leasing served as the primary driver of demand, accounting for nearly 80 per cent of the total annual GLV. This trend indicates a sustained preference for premium office spaces as occupiers continue to scale their operations. From a sectoral perspective, IT-BPM remained the dominant force, contributing 31 per cent of total leasing. Global Capability Centres (GCCs) also reached a new high, leasing 29.3 MSF and representing 33 per cent of the annual volume. Anshul Jain, Chief Executive - India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, said, "Occupier confidence, deep structural demand, and continued infrastructure development will keep India at the forefront of global enterprise decision-making. With GCC expansion accounting for nearly one-third of total leasing, alongside rising technology adoption, a diversified occupier base and a vast talent pool, India is well positioned to maintain its leadership in the global office market through 2026 and beyond." The market also saw record supply additions, which crossed the 50 MSF threshold for the first time to reach 53 MSF. Despite this surge in supply, strong demand led to a significant compression in vacancy levels, which dropped by 210 basis points year-on-year. Rental growth was recorded across all eight major cities, with Hyderabad and Mumbai leading with increases between 12 and 14 per cent. (ANI)
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