India's Office Market Surges to New Heights in 2025

India's office market reached a record high absorption of 78.2 million sq ft in 2025, driven mainly by Global Capability Centres (GCCs). Despite global challenges, a strong demand from GCCs spurred growth, leading to significant occupancy gains and a historic supply increase. Key markets like Bengaluru and NCR showed remarkable absorption growth.

In 2025, India's office market achieved unprecedented growth, registering a landmark absorption of 78.2 million square feet. The surge defied global economic challenges, fueled largely by Global Capability Centres (GCCs), which accounted for 45% of the total absorption, according to a report by Vestian.

The report highlights that GCC-driven leasing saw a remarkable 20% increase, reaching 34.9 million sq ft. This was bolstered by a favorable policy framework and H1-B visa restrictions, leading to increased construction activities to meet the demand. Newly completed office spaces rose by 8% to 55.5 million sq ft.

Despite the record supply, demand continued to outstrip new completions, significantly reducing vacancy rates by 310 basis points from 13.9% in 2024 to 10.8% in 2025. While major cities saw improvements, Pune's vacancy rate rose due to an influx of new supply. The IT-ITeS sector dominated the market, with GCCs particularly influential, contributing to nearly 60% of the sector's transaction volume.

(With inputs from agencies.)