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India’s office real estate surged 40 percent in H1 2025, led by Bengaluru and Pune.
News18
India’s commercial office real estate sector achieved exceptional growth in the first half of 2025, with net office leasing surging 40% year-on-year to 26.8 million square feet across the top 7 cities. Bengaluru maintained market leadership with 6.55 million square feet of absorption, while Pune emerged as the fastest-growing market with 188% growth.
Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group, says, “New office supply increased 25% to 24.51 million square feet, creating balanced market dynamics. Vacancy rates improved marginally to 16.3%, and average rentals grew 4% to INR 88 per square foot per month. The IT-ITES sector dominated with 29% market share, followed by co-working spaces at 22%.”
Market fundamentals remain healthy, supported by Global Capability Centre expansion and sustained corporate confidence, positioning the sector for continued growth through 2025.
• Net Office Absorption: 26.8 million square feet in H1 2025, representing a robust 40% year-on-year increase from 19.08 Mn sq ft in H1 2024
• Top Markets: Bengaluru leads with 64% growth, Pune rockets 188% in office absorption & 533% in new supply
• New Office Supply: 24.51 Mn sq ft delivered in H1 2025, marking a 25% growth compared to 19.65 Mn sq ft in the previous year
• Average Office Rentals: INR 88/sq ft per month in H1 2025, reflecting a steady 4% increase and demonstrating stable pricing dynamics despite strong demand
• Office Vacancy: Dips to 16.3%, rentals rise 4% amid strong demand in India’s top cities
• Tech Sector: Drives 29% of leasing share, co-working & BFSI also strong performers
• Market Vacancy Rate: 16.3% in H1 2025, showing marginal improvement from 16.7% in H1 2024, indicating healthy market equilibrium
• Large Transaction Dominance: 57% of all office deals exceeded 0.1 Mn sq ft, up from 52% in H1 2024, reflecting corporate preference for larger consolidated spaces
• Global Capability Centres: GCCs drove office demand in H1 2025, leasing 5.45 Mn sq ft in Bengaluru, 2.81 Mn sq ft in NCR, 2.77 Mn sq ft in Pune, 0.95 Mn sq ft in Chennai, and 1.93 Mn sq ft in Hyderabad
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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