The Aryavarth Express
New Delhi: India’s office real estate sector achieved a historic high in 2025, with net absorption reaching 61.4 million square feet (MSF) across the top eight cities, marking a 25 per cent year-on-year growth. This is the strongest performance ever recorded for the sector, according to Cushman & Wakefield’s Office Q4 MarketBeat report.
Net absorption, which reflects the net change in occupied office space and serves as a key indicator of demand, was driven largely by Bengaluru and Delhi NCR. Bengaluru topped the charts with 14.4 MSF, followed by Delhi NCR at 10.9 MSF. Together, the two cities accounted for 41 per cent of total national absorption.
Chennai and Delhi NCR emerged as the fastest-growing markets, registering year-on-year growth of 187 per cent and 82 per cent, respectively. Other major contributors included Mumbai with 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 at Cushman & Wakefield, said Bengaluru, Delhi NCR and Mumbai together accounted for more than half of the total absorption. He added that the rapid growth in Chennai highlights the emergence of new office corridors, indicating how demand is expanding into newer micro-markets.
Gross Leasing Volume (GLV) during the year stood at around 89 MSF, matching the record levels seen in the previous year. Fresh leasing activity was the key demand driver, contributing nearly 80 per cent of total leasing, reflecting continued occupier preference for premium office spaces as businesses expand.
From a sectoral standpoint, IT-BPM remained the largest contributor, accounting for 31 per cent of total leasing. Global Capability Centres (GCCs) reached a new milestone, leasing 29.3 MSF and representing 33 per cent of the total annual leasing volume.
Anshul Jain, Chief Executive – India, Southeast Asia, Middle East, Africa and APAC Office and Retail at Cushman & Wakefield, said strong occupier confidence, structural demand and ongoing infrastructure development are keeping India at the forefront of global enterprise decision-making. He noted that with GCC expansion forming nearly one-third of total leasing, India is well positioned to maintain its leadership in the global office market through 2026 and beyond.
On the supply side, the market also witnessed record additions, with new supply crossing 50 MSF for the first time to reach 53 MSF. Despite this surge, strong demand led to a sharp reduction in vacancy levels, which declined by 210 basis points year-on-year. Rental values rose across all eight major cities, with Hyderabad and Mumbai leading the growth at 12–14 per cent.
