Net Office Leasing in Top 7 Cities Hits All-time High of ~55 Mn Sft in 2025

 

Net Office Leasing in Top 7 Cities Hits All-time High of ~55 Mn Sft in 2025

 

·  Net office leasing across top 7 cities in 2025 up 10% y-o-y – from approx. 49.95 Mn sq. ft. in 2024 to nearly 55.16 Mn sq. ft. in 2025

·  GCC gross office leasing share at record high of 41% in 2025, was 36% in 2024

·  Net leasing declined 5% in IT/ITeS hub Bengaluru – from approx. 14.87 Mn sq. ft. in 2024 to approx. 14.15 Mn sq. ft.in 2025; Pune recorded highest yearly growth of 63%

·  Top 7 cities recorded 8% y-o-y jump in new office completions – from approx. 48.11 Mn sq. ft. in 2024 to approx. 51.83 Mn sq. ft. in 2025

·  Bengaluru saw highest new office supply in 2025 - approx. 13.5 Mn sq. ft. - against 12.5 Mn. sq. ft. last year, denoting an 8% y-o-y rise; MMR new office supply dropped 35% 

·  IT/ITeS continues to dominate office space demand with 27% overall leasing share in 2025: coworking with 23% & BFSI with 18% share

·  Office vacancy dropped marginally to 16.10% in 2025 from 16.50% in 2024 across top 7 cities

·  Avg. monthly office rentals jumped 6% - from INR 87 per sq. ft. in 2024 to INR 92 per sq. ft. in 2025; Bengaluru recorded the highest 9% y-o-y rise

           

Mumbai, 24 December 2025 - Despite notable headwinds including IT layoffs and tariff tensions, the Indian office market in India's top 7 cities is on a roll. Latest ANAROCK Research data reveals that net office absorption in these cities is at all-time high of approx. 55.16 Mn sq. ft. in 2025 - a 10% yearly rise against approx. 49.95 Mn sq. ft. in 2024.

 

Surprisingly, while Bengaluru led other cities with approx. 14.15 Mn sq. ft. office space leased this year against approx. 14.87 Mn sq. ft. in 2024, the city witnessed a 5% yearly decline in net leasing. 

 

·  In terms of annual net absorption growth, Pune recorded the highest with 63% - from approx. 4.8 Mn sq. ft. in 2024 to approx. 7.8 Mn sq. ft. in 2025

·  Besides Bengaluru, Kolkata also witnessed a 3% drop in net office absorption – from approx. 1.18 Mn sq. ft. in 2024 to approx. 1.15 Mn sq. ft. in 2025

·  MMR, Chennai, Hyderabad, and NCR saw net leasing jump 15%, 12%, 9% and 7% respectively

 

 

Net Office Absorption (In Mn Sq. ft.)
City	2025	2024	% Change (2025 Vs 2024)
Bangalore	14.15	14.87	-5%
MMR	8.23	7.16	15%
NCR	10.12	9.49	7%
Chennai	5.6	4.98	12%
Hyderabad	8.11	7.47	9%
Pune	7.8	4.8	63%
Kolkata	1.15	1.18	-3%
Total	55.16	49.95	10%

Source: ANAROCK Research & Advisory

 

New Office Supply

 

In terms of new office completions, the top 7 cities recorded an 8% yearly increase – from approx. 48.11 Mn sq. ft. in 2024 to approx. 51.83 Mn sq. ft. in 2025. Again, Bengaluru beat all other top cities with approx. 13.5 Mn sq. ft. of new office supply added in 2025, against 12.5 Mn sq. ft. in 2024 - an 8% yearly growth.

 

·  MMR and Hyderabad were the only cities to see a drop in new supply addition in 2025 - by 35% and 39%, respectively. MMR added approx. 6.05 Mn sq. ft. office space in 2025 against approx. 9.27 Mn sq. ft. in 2024. Hyderabad saw approx. 9 Mn sq. ft. of new supply in 2025, against 12.88 Mn sq. ft. in 2024.

·  Pune recorded a massive 103% yearly jump in new office supply - from 5.23 Mn sq. ft. in 2024 to over 10.60 Mn sq. ft. in 2025

·  In Chennai, new office supply rose 72% y-o-y – from 2.27 Mn sq. ft. in 2024 to 3.90 Mn sq. ft. in 2025, while NCR witnessed a 46% rise – from 5.93 Mn sq. ft. in 2024 to 8.65 Mn sq. ft. in 2025.

·  Kolkata saw the highest 317% yearly growth in new office completions, but this supply is also the lowest at just 0.13 Mn sq. ft. in 2025 against 0.03 Mn sq. ft. in 2024

 

"India's office real estate market veritably boomed in 2025, with net absorption and new completions both surging thanks to the country's robust economic growth," says Peush Jain, MD - Commercial Leasing & Advisory, ANAROCK Group. "GCCs are leading the charge, capturing a record 41% share of gross absorption — up from 36% in 2024. Drawn by India's economic strength, stability, and cost advantages, major US corporates are snapping up massive office spaces across our key cities."

 

"Sector-wise, IT/ITeS continued to dominate office space demand in 2025 with a 27% overall leasing share,” adds Jain. "Next came the coworking sector with a 23% share, and BFSI with 18%. Interestingly, 2025 saw demand from the coworking segment rise by 2% against 2024. BFSI, consultancy businesses and e-commerce saw their shares grow 1% each; however, IT/ITeS, manufacturing & industrial and miscellaneous other sectors’ demand share dropped."

 

 

New Office Completion (In Mn Sq. ft.)
City	2025	2024	% Change (2025 Vs 2024)
Bangalore	13.50	12.5	8%
MMR	6.05	9.27	-35%
NCR	8.65	5.93	46%
Chennai	3.90	2.27	72%
Hyderabad	9.00	12.88	-30%
Pune	10.60	5.23	103%
Kolkata	0.13	0.03	317%
Total	51.83	48.11	8%

Source: ANAROCK Research & Advisory

 

Office Vacancies

 

Office space vacancies across the top 7 cities collectively dropped to 16.10% in 2025 - a marginal improvement over the 16.50% in 2024. With reduced new office supply in MMR and Hyderabad in 2025, office vacancies dropped in both cities – from 15.50% in 2024 to 14.70% in 2025 in MMR, and from 26.50% to 26.30% in Hyderabad. Currently, Hyderabad has the highest vacancy rate among the top 7 cities, followed by NCR with 21.70%.

 

Office Rentals

 

Average monthly office rentals increased by a marginal 6% - from INR 87/sq. ft. in 2024 to INR 92/sq. ft. in 2025. Bengaluru recorded the highest 9% yearly rise – from INR 94/sq. ft. in 2024 to INR 102/sq. ft. in 2025. Both Pune and NCR recorded 6% yearly increases, while MMR as well as Chennai saw 5% y-o-y jumps. Hyderabad saw a yearly rise of just 4%, while Kolkata witnessed a 3% increase.