India's office space demand hits record 48.9 million sq ft in H1 2025
The unprecedented surge in demand was driven by strong leasing activity in Bengaluru, NCR, and Pune, with
Global Capability Centres
(GCCs) leading the absorption. GCCs alone contributed 39% of total leasing, followed by third-party IT services (22%), flex operators (21%), and India-facing businesses (18%).
GCCs and IT lead occupier activity
The report highlights that GCCs continued their aggressive space acquisition, leasing 19.1 million sq ft in H1 2025—a 96% jump over H1 2024. Similarly, third-party IT services recorded a 43% rise, underlining renewed optimism in India's digital and outsourcing sectors.
Supply falls short of soaring demand
While occupier demand hit new highs, supply struggled to keep pace. Office completions declined by 20% year-on-year to 20.1 million sq ft, raising concerns over future space availability. The mismatch between supply and demand is most evident in key markets like Bengaluru and Hyderabad, where project completions were down by 73% and 72% respectively.
Vacancy rates and rents adjust
As a result, average vacancy rates across top 8 cities declined from 15% to 14.7%, with six out of eight cities showing contraction. Mumbai and Hyderabad recorded the highest year-on-year rental growth at 12% and 10% respectively, with average rents in Mumbai reaching ₹129 per sq ft per month.
Bengaluru leads, NCR and Pune clock new highs
Bengaluru maintained its leadership with 18.2 million sq ft of office leasing, up 116% year-on-year, followed by NCR at 7.2 million sq ft and Pune at 5.1 million sq ft, both notching their highest-ever H1 performance. Kolkata also marked a notable jump with a 60% year-on-year growth
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