Office Leasing Touches 48.9 Mn Sq Ft in H1 2025, Bengaluru Leads

India’s commercial real estate market is experiencing a robust rebound in 2025, with office leasing across top 8 cities touching a new milestone. According to the latest insights from Knight Frank India, the sector recorded 48.9 million square feet of office space leased between January and June 2025, a solid 41% jump compared to the same period last year. This uptick signals a return of strong occupier sentiment and a promising year ahead for India’s office market.

Bengaluru Leads the Charge with Historic Absorption

Among India’s leading commercial hubs, Bengaluru emerged as the clear leader, clocking a record-breaking 18.2 million sq ft of office space absorption in just the first half of the year. A major contributor to this growth was the Global Capability Centres (GCCs), which drove over half (55%) of the leasing activity in the city.

Interestingly, 46% of the deals in Bengaluru were pre-commitments, indicating that companies are locking in spaces before they are ready — a strong indicator of confidence and a tight supply of high-grade office infrastructure.

Also Read: GCC Office Leasing Rises 24% in FY25; Bengaluru Leads with 65% Share

Performance Snapshot: Office Leasing in Other Cities

While Bengaluru stole the spotlight, several other cities also posted encouraging numbers:

• Delhi-NCR saw a healthy increase of 27.5%, with 7.2 million sq ft leased.
• Hyderabad recorded 5.9 million sq ft, growing by 16% year-on-year.
• Chennai reported one of the highest jumps,68%, leasing 5.1 million sq ft.
• Pune followed closely, also at 5.1 million sq ft, marking a 17% rise.
• Kolkata witnessed a 60% increase, with 1.1 million sq ft of office leasing.

However, Mumbai and Ahmedabad experienced a slowdown:

• Mumbai’s leasing fell slightly by 5%, to 5.5 million sq ft.
• Ahmedabad saw a steeper 51% decline, closing H1 at 0.8 million sq ft.

Experts believe these drops are likely due to high base effects rather than a genuine dip in market performance.

2025 Could Break All-Time Leasing Records

With nearly 49 million sq ft already leased in just six months, projections for the full year are optimistic. Industry analysts expect total office leasing across top 8 cities to cross 80–90 million sq ft by the end of 2025, potentially setting a new annual high.

Sectors such as technology (IT-ITeS), banking and financial services (BFSI), and professional services continue to lead demand for modern office spaces.

New Supply Trails Behind Demand

Even as demand surges, new office completions are lagging. Only 20.1 million sq ft of fresh office inventory was delivered in H1 2025  a drop of 20% compared to the same period in 2024.

Developers are slowly returning focus to commercial projects after several years of prioritizing residential developments. The mismatch between supply and demand is prompting occupiers especially large corporations to pre-lease upcoming office spaces in key metros.

Expert Insights: Optimism Fuels Market Confidence

Shishir Baijal, Chairman and Managing Director at Knight Frank India, commented on the strong H1 performance:

“India’s office market has touched yet another peak in 2025. The impressive 42% year-on-year growth in transaction volumes is proof of India’s strong economic foundations and its appeal as a global office destination. This momentum is being sustained by demand for Grade A spaces and long-term occupier confidence.”

Baijal also pointed out that India’s maturing business landscape and its strategic position in global supply chains are drawing multinational and domestic companies alike.

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Bengaluru: India’s Unchallenged Tech Powerhouse

Bengaluru’s record performance in the first half of 2025 further cements its status as India’s top tech city. With its thriving ecosystem of startups, IT firms, and GCCs, the city continues to be a magnet for global firms seeking quality office infrastructure and access to a skilled talent pool.

The rise in pre-leased space deals also hints at a future supply crunch, urging developers to speed up construction of new commercial spaces. If trends continue, Bengaluru may contribute significantly to the projected 90 million sq ft of total leasing by year-end.

Conclusion

India’s office real estate sector is back in full swing, with office leasing across top 8 cities hitting nearly 49 million sq ft in H1 2025 and Bengaluru leading the way. As demand outpaces supply and companies line up for future-ready workspaces, the year 2025 is shaping up to be a milestone year for Indian commercial real estate.

With corporate occupiers showing long-term commitment and developers regaining interest in office projects, the country’s office market is on track for record-setting growth, reaffirming India’s position as a global business powerhouse.

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