India’s office real estate market crossed 83.3 million sq ft (msf) of gross leasing in 2025, marking a 7.8% year-on-year increase from 77.2 million sq ft in 2024, led by Bengaluru, Delhi-NCR, Hyderabad and Mumbai, according to a JLL report. Delhi-NCR was the only city to record a decline in commercial leasing, slipping 1.6% year-on-year.
The fourth quarter of 2025 saw a record leasing of 26.8 million sq ft, driven by demand from global firms, expanding GCCs, and a sharp rise in flex space absorption, the report said.
Bengaluru led the country with 24.1 million sq. ft of gross leasing in 2025, recording a 9.8% increase over the previous year. Chennai followed with 8.7 million sq. ft, up 9.7%, while Hyderabad achieved 11.7 million sq. ft, registering an 8.9% rise, it said.
Mumbai posted one of the strongest growth rates at 13%, reaching 11.6 million sq. ft, and Pune delivered the highest expansion among major markets with an 18.2% jump to 8.1 million sq. ft. In contrast, Delhi NCR saw a decline of 1.6% to 17.4 million sq. ft, and Kolkata contracted by 9.2% with 1.6 million sq. ft of activity.
JLL said that the net absorption also crossed 57 million sq ft for 2025, a 14.1% rise over the previous year. Bengaluru accounted for 37.2% of Q4 net absorption, followed by Hyderabad and Delhi NCR, supported by strong pre-commitments and fresh space take-up.
GCCs emerged as the dominant driver for the office segment
JLL said that the Global Capability Centres (GCCs) emerged as the dominant driver of demand with a historic 31.4 million sq. ft of leasing in 2025, marking a 13% year-on-year increase and accounting for 37.7% of total activity.
Domestic occupier activity also strengthened, led by Indian flex operators who leased about 18 million sq ft in their best-ever performance.
“The entry of nearly 200 new Global Capability Centres (GCCs) over the past two years, and GCCs now representing approximately 50% of all active space requirements, combined with robust occupancies creating space constraints for large occupiers, signals strong portfolio expansion ahead,” Samantak Das, chief economist and head of research and REIS, India, JLL, said.
Vacancy levels dropped to 15.2%, the lowest in five years, with core locations in major metros now registering tight, single-digit availability. Bengaluru saw vacancy fall to a four-year low, while Mumbai and Delhi NCR reported the lowest vacancy levels in over fifteen years.
Flex leads Q4 activity, but tech dominates full-year demand
The report said that flex operators emerged as the top occupier segment for the second consecutive quarter, with 26.6% share of Q4 leasing, ahead of tech at 21.2%.
However, on a full-year basis, tech retained its position as the primary demand driver with a 25.8% share, followed by flex at 21.5%. Manufacturing, industrial and BFSI segments contributed almost equally with 15.4% and 15.2% shares, respectively.
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On track to potentially cross 100 million sq ft
The combination of strong headcount growth, tight vacancies, and secular demand across segments suggested that India’s office leasing volumes could potentially surpass the 100 million sq ft milestone within the next two years, Das said.
“Demand from GCCs, both existing ones and new country entrants, remains strong, with nearly 200 new GCCs making their way into the country over the past two years. With GCCs making up about 50% of all active space requirements driven by international banking and financial services players’ appetite for offshore operational centres, complemented by the manufacturing sector dynamism fostered through strategic policy initiatives and strong tech research and development background, the growth runway remains intact,” the report said.