Record Office Leasing Surge in Major Indian Cities

Office space leasing hit a record 82.6 million sq ft in 2025 across nine major Indian cities, driven by demand from tech and BFSI firms. Global firms continue expanding footprints in India, with GCCs projected to drive significant space absorption. South Indian cities account for 50% leasing.

Office space leasing across nine major cities in India reached record levels last year, with a total activity of 82.6 million square feet, according to real estate consultant CBRE. This marks a 1% year-on-year increase in office leasing activity.

The steady demand from both domestic and foreign entities, alongside investment and portfolio expansion strategies, is driving this growth. Anshuman Magazine, Chairman, and CEO, of India, South-East Asia, Middle East & Africa at CBRE, highlighted the resilience of India's office market despite global uncertainties, emphasizing the development of Global Capability Centres.

Global Capability Centres are predicted to account for a significant portion of office space absorption by 2026. Tier-II cities might also experience leasing expansions, according to Ram Chandnani, Managing Director of Leasing at CBRE India. South Indian cities such as Bengaluru, Hyderabad, and Chennai contribute to half of the country's leasing activity.

(With inputs from agencies.)