New Delhi, Dec 29: Office space absorption across six major Indian cities stood at 75.2 million sq. ft. at year end of CY25, maintaining levels similar to the previous year, a report said on Monday.
Bengaluru, Delhi-NCR And Mumbai Dominate Leasing Activity
The report from real estate advisory firm Savills India said that Bengaluru, Delhi-NCR and Mumbai emerged as the top three performing markets, collectively accounting for nearly 61 per cent of the gross leasing activity in 2025.
It forecasted that total demand would touch 75 million in 2026, while supply was 58.2 million in 2025 and is expected to rise to 90.8 million next year.
Grade A Office Stock Continues To Grow
The firm said that leasing figures cover only fresh lease transactions and exclude pre‑commitments and lease renewals. Overall Grade A stock stood at 846.9 million sq. ft. in 2025, with a projected 937.7 million in 2026.
GCCs Drive Market Resilience Despite Global Uncertainty
“Despite global uncertainties, India’s office market ended 2025 on a firm and resilient note. The momentum was led by new entrants and expansionary demand from GCCs,” said Naveen Nandwani, MD, Commercial Advisory and Transactions, Savills India, said.
Outlook For 2026 Remains Positive
Looking ahead to 2026, the market outlook remains positive, driven by GCCs, Technology & BFSI growth, the report said. While a strong supply pipeline could lead to a marginal rise in vacancy levels, it will also provide occupiers with access to high-quality spaces, keeping rental growth largely range-bound, with limited upside in select micro markets, Nandwani added.
City‑level data showed Bengaluru led with 20.2 million sq. ft. of gross absorption, followed by Delhi‑NCR at 13.6 million and Mumbai at 12.1 million.
IT-BPM And Flex Spaces Lead Sectoral Demand
The IT-BPM and flexible workspace sectors continued to lead with 33 per cent and 15 per cent share respectively, in overall leasing. Leasing volumes in Bengaluru moderated by around 12 per cent YOY, reflecting calibrated occupier expansion decisions and delayed deal closures amid global uncertainty.
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Hyderabad Sees Strong GCC-Led Activity
Chennai, Hyderabad and Pune posted 9.1 million, 11.4 million and 8.8 million respectively. Hyderabad's leasing was significantly driven by GCC deals which accounted for 43 per cent of the total gross absorption.
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