NEW DELHI: India’s office market recorded a historic high in absorption during the first nine months of 2025, with gross leasing touching 59.6 million sq ft, the highest-ever volume for this period, according to the latest report by CBRE South Asia.
The report highlighted that technology companies, Global Capability Centres (GCCs), flexible workspace operators, and BFSI firms remained key occupiers, jointly contributing around 60% of total leasing.
“Going forward, the sustained leasing in premium assets is expected to drive vacancy compression and occupiers are likely to continue exploring peripheral locations, driven by the infusion of high-grade supply,” said Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, of the company.
Bengaluru leads; Mumbai, NCR follow closely
Among cities, Bengaluru remained India’s most active office market, accounting for 25% (15.1 million sq ft) of total leasing during January–September 2025. It was followed by Mumbai (10.6 million sq ft) and Delhi-NCR (10.2 million sq ft). Collectively, the three markets represented over 60% of the country’s total office absorption during the period.
GCCs continued to anchor demand, accounting for 39% of total leasing in the first nine months. Bengaluru, Pune, and Delhi-NCR together captured 67% of overall GCC-driven activity, reflecting the continued consolidation of technology and innovation centres across India’s major office hubs.
Q3 2025: GCCs anchor quarterly momentum
In the July–September 2025 quarter, office leasing activity stood at 19.9 million sq ft, supported by healthy occupier demand across major cities. Bengaluru led with a 22% share, followed by Mumbai (20%) and Delhi-NCR (19%).
GCCs remained the largest occupier category, leasing 7.5 million sq ft of space during the quarter — 38% of total activity. Among GCC-heavy markets, Bengaluru accounted for 38%, Pune 25%, and Hyderabad 15%.
“GCCs would remain pivotal to office absorption, accounting for 35-40% of total leasing in 2025.
Established players might continue taking up space in large integrated tech parks, while new entrants are expected to leverage flexible spaces. While US firms currently dominate the GCC landscape, rising interest from EMEA and APAC occupiers is anticipated to widen the demand base,” said Ram Chandnani, managing director – Leasing, of the company.
Supply up 10%; flight-to-quality trend deepens
The office supply pipeline also strengthened, rising 10% year-on-year to 41 million sq ft during the first nine months of 2025. Pune, Bengaluru, and Delhi-NCR accounted for a combined 66% of new completions, underscoring developers’ focus on key growth corridors.
During Q3 2025, fresh supply reached 13.6 million sq ft, largely comprising green-certified, amenity-rich campuses aligned with occupiers’ “flight-to-quality” strategies.
“The current year is expected to close with a steady pipeline of high-quality office stock, led by Bengaluru, Hyderabad, and Delhi-NCR,” added Magazine.
CBRE expects India’s office market to maintain its growth trajectory through 2025, driven by sustained occupier interest in premium developments, strong GCC activity, and rising institutional investment appetite.