India's office sector recorded its strongest performance in 2025, with net absorption of 61.4 million square feet (MSF) across the top eight cities. For the uninitiated, net absorption is a key indicator of real estate demand, representing the net change in occupied office space. This marks a 25 per cent year-on-year increase and the strongest year on record for the sector, according to Cushman & Wakefield's Office Q4 MarketBeat report.
Bengaluru, Delhi dominate
At the city level, Bengaluru (14.4 MSF) and Delhi (10.9 MSF) dominated, accounting for 23 per cent and 18 per cent of total net absorption, respectively, driven by increased activity in core business districts. They were followed by Mumbai (9.6 MSF), Hyderabad (9.1 MSF), Pune (8.2 MSF), Chennai (7.0 MSF), Kolkata (1.4 MSF) and Ahmedabad (0.8 MSF).
Notably, Chennai and Delhi NCR recorded the sharpest YoY growth at 187 per cent and 82 per cent, respectively, underscoring strengthening market fundamentals and an increasing capacity to attract and absorb expanding office demand.
City-wise total net absorption
|
Net Absorption (MSF) |
2024 |
2025 |
Y-O-Y % Change |
|
Mumbai |
10.9 |
9.6 |
-12% |
|
Delhi NCR |
6.0 |
10.9 |
82% |
|
Bengaluru |
14.2 |
14.4 |
1% |
|
Chennai |
2.4 |
7.0 |
187% |
|
Pune |
5.0 |
8.2 |
65% |
|
Hyderabad |
7.9 |
9.1 |
15% |
|
Kolkata |
1.5 |
1.4 |
-5% |
|
Ahmedabad |
1.2 |
0.8 |
-28% |
|
PAN India |
49.1 |
61.4 |
25% |
Leasing Activity and Sectoral Trends
The record net absorption was supported by robust leasing activity and healthy supply additions, catering to growing demand across markets. Gross Leasing Volume (GLV) stood at ~89 MSF, matching last year’s record high and signalling sustained, long-term confidence in India’s office market growth trajectory. This performance marks four consecutive years of consistent growth and the second consecutive year of record leasing, reinforcing India’s position as the office of the world.
|
Gross Leasing Volume (MSF) |
2024 |
2025 |
Y-O-Y % Change |
|
Mumbai |
17.8 |
16.9 |
-5% |
|
Delhi NCR |
12.7 |
15.8 |
25% |
|
Bengaluru |
25.9 |
22.0 |
-15% |
|
Chennai |
7.3 |
9.0 |
23% |
|
Pune |
8.5 |
9.9 |
17% |
|
Hyderabad |
12.3 |
12.4 |
1% |
|
Kolkata |
1.7 |
1.7 |
1% |
|
Ahmedabad |
1.8 |
0.9 |
-48% |
|
PAN India |
88.0 |
88.7 |
1% |
According to Anshul Jain, Chief Executive, India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, said, this year’s performance reflects more than record numbers; it signals a long-term growth trajectory anchored in strong fundamentals.
"Occupier confidence, deep structural demand, and continued infrastructure development will keep India at the forefront of global enterprise decision-making. With GCC expansion accounting for nearly one-third of total leasing, alongside rising technology adoption, a diversified occupier base and a vast talent pool, India is well positioned to maintain its leadership in the global office market through 2026 and beyond," Jain said.
Supply, vacancy and rental growth
Supply additions touched a record ~53 MSF, marking a 17 per cent YoY increase, with Bengaluru and Pune together accounting for 49 per cent of annual completions. After several years of subdued supply, new completions crossed the 50 MSF threshold for the first time, providing relief to occupiers and easing pressure in tight markets.
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