Office space leasing set to cross 90 million sq ft in 2025
in the top 8 cities reached 21.4 million square feet (MSF) in Q2 (April-June) reflecting a 5% quarter-on-quarter growth while no significant change year-on-year, according to Cushman & Wakefield's report.
With H1 2025
gross leasing
now at 42 msf, the sector is firmly on track to surpass 90 million square feet of annual leasing activity – a new benchmark.
This momentum follows 2024's historic performance of 89million square feet, with H1 2024 figures comparable to this year's. If trends hold, 2025 will mark the second consecutive year of 85+ million square feet of gross leasing, reinforcing a new baseline of market performance.
'India's
office market
continues to outperform global peers, underpinned by a solid economic outlook and long-term occupier confidence. Our forecast of more than 90 million square feet of gross leasing this year reflects the sector's structural strength—particularly as we see sustained growth in sectors like technology, BFSI, and engineering,' said Anshul Jain, Chief Executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield.
The strong leasing numbers reflect the depth of demand from global and domestic occupiers, with
Global Capability Centres
(GCCs), IT-BPM firms, flex operators, BFSI, and engineering & manufacturing companies driving growth.
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Gross leasing volume, which factors in all leasing activity in the market, including fresh take-up, open market renewals by corporates as well as pre-leasing, is an indication of overall market activity.
'The growth is being fuelled by a convergence of trends—expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms. But supply is lagging in core locations, creating a landlord's market. Occupiers looking for high-quality space need to act early, especially as pre-commitments are on the rise and rentals are climbing in prime markets,' said Veera Babu, executive managing director, tenant representation, Cushman & Wakefield.
Net absorption, a key indicator of real estate demand in terms of expansion of occupied space in the market, stood at 13.5MSF in Q2, marking a 19% year-on-year growth, and totalled 27.8 msf for H1 2025.
Fresh leases accounted for 77% of total leasing activity in H12025, a trend that has consistently remained above the 70% mark since late 2022. Notably, pre-commitments rose to 10%, suggesting a supply crunch in core markets and heightened occupier urgency.
Global Capability Centres continued to be a major demand driver, contributing 24% of the overall leasing activity in the quarter at 5.1 MSF. Bengaluru (1.6 MSF) and Pune (1.6MSF) accounted for 63% of this leasing.
H1-25 marked a historic high for GCC leasing in the first half of any year, with 11.4 msf transacted, up 3% year-on-year. IT-BPM held the largest share at 40%, followed by E&M GCCs with a share of 36%.
The office market across the top 8 cities saw an influx of 12.5 million sq ft of new completions in Q2, a strong 53% increase y-o-y and a 17% q-o-q growth.
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