Bengaluru: The office sector recorded the highest-ever leasing as well as supply in the first half of CY 2025. Leasing activity touched 39 mn. sq. ft., a 3% y-o-y growth. New office supply surged to its highest ever level at 27.7 mn. sq. ft., 19% y-o-y increase during January-June 2025.
As per the report, Bengaluru led India's office space absorption in the first half of CY 2025, capturing a 27% share, equivalent to 10.5 mn. sq. ft. Mumbai and Delhi-NCR followed, accounting for 17% (6.6 mn. sq. ft.) and 16% (6.1 mn. sq. ft.) respectively. Collectively, these three major markets accounted for approximately 60% of the total office space leased between January-June 2025.
Technology firms were the primary drivers of office leasing during Jan-Jun’25, securing 9.6 mn. sq. ft, with a 25% share in the total leasing. BFSI and Flexible space operators followed, accounting for 23% and 17% respectively. Cumulatively, Technology, BFSI and flexible space operators led the leasing with a cumulative share of 64% during January -June 2025.
During January -June 2025, global corporates including US, EMEA, & APAC), led the absorption with 53% whereas domestic firms recorded 47% of absorption during the same period. US corporations (led by financial services and investment firms) accounted for a share of 47% of the total leasing by the BFSI sector during January-June 2025. Leasing by the engineering & manufacturing sector was primarily driven by US, and EMEA firms with a combined share of over 66%.
About 15.2 mn. sq. ft space was leased by GCCs during January -June 2025, accounting for ~ 40% share in overall leasing. Bengaluru recorded 5.2 mn. sq. ft. GCC leasing followed by Chennai at 2.7 mn. sq. ft. and Delhi-NCR at 2.6 mn. sq. ft. during this period.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "The first half of 2025 has been a record period for office leasing in India, pointing to a resilient and dynamic growth curve. We are witnessing not just an uptick in numbers, but a profound transformation driven by strong demand and strategic portfolio expansions from both domestic and global enterprises. All metro cities have collectively contributed to this record leasing, solidifying their status as attractive economic hubs. This sustained momentum, coupled with significant capital inflows into high-quality, institution-grade developments, underscores the unwavering global confidence in India’s long-term growth story."
On a quarterly basis, office sector leasing in April to June 2025, increased by over 8% y-o-y, recording 20.3 mn. sq. ft. This period also saw a surge in new completions with 17.1 mn. sq. ft. of incoming supply, a 27% y-o-y increase.
In terms of absorption, Bengaluru led the office activity with 5.1 mn. sq. ft. followed by Mumbai with 3.7 mn. sq. ft, Chennai and Pune recorded 3 mn. sq. ft each. Supply additions in Pune, Bengaluru, and Hyderabad accounted for a 73% share.
The report further highlights that technology companies held the highest share in office leasing during Apr-Jun’25 with a 26% share, followed by BFSI firms with 21% share, flexible space operators 19% share, research, consulting & analytics (RCA) companies with 8% share during the same period. Engineering & manufacturing (E&M) and aviation sectors accounted for 5% share each, and life sciences accounted for 3% share.
For the April – June 2025 period, leasing by GCCs was recorded at 7.3 mn. sq. ft., accounting for a 36% share in overall leasing. Bengaluru led the GCC leasing during the quarter with a 27% share, followed by Chennai at 21%, Pune at 20% and Hyderabad at 15%. Delhi-NCR and Mumbai had a 12% and 4% share in leasing, respectively.
Office leasing in green-certified assets accounted for 77% of total office leasing during the quarter, (15.6 mn. sq. ft.) while 93% of new supply (16.0 mn. sq. ft.) in Apr-Jun’25 was green-certified. This underscores the increasing commitment of both occupiers and developers to environmental, social, and governance (ESG) principles and sustainability initiatives. Bengaluru led with a 29% in leasing in green-certified assets, followed by Chennai at 16% and Hyderabad at 14% share in overall leasing.
Ram Chandnani, Managing Director, Leasing, CBRE India, said, "It's clear that the office market's vibrancy is rooted in specific sectoral strengths and a fundamental shift in occupier priorities. Technology firms, particularly those at the forefront of AI, ML, and cloud computing, remain core drivers of demand for office space, complemented by growth from the BFSI and Engineering & Manufacturing sectors. Occupiers are now increasingly prioritizing employee experience, seeking out premium, LEED-certified spaces that champion well-being, flexibility, and collaboration. The GCC expansion showcases India as a growing market going beyond metro cities now."
As per the report, Bengaluru led India's office space absorption in the first half of CY 2025, capturing a 27% share, equivalent to 10.5 mn. sq. ft. Mumbai and Delhi-NCR followed, accounting for 17% (6.6 mn. sq. ft.) and 16% (6.1 mn. sq. ft.) respectively. Collectively, these three major markets accounted for approximately 60% of the total office space leased between January-June 2025.
Technology firms were the primary drivers of office leasing during Jan-Jun’25, securing 9.6 mn. sq. ft, with a 25% share in the total leasing. BFSI and Flexible space operators followed, accounting for 23% and 17% respectively. Cumulatively, Technology, BFSI and flexible space operators led the leasing with a cumulative share of 64% during January -June 2025.
During January -June 2025, global corporates including US, EMEA, & APAC), led the absorption with 53% whereas domestic firms recorded 47% of absorption during the same period. US corporations (led by financial services and investment firms) accounted for a share of 47% of the total leasing by the BFSI sector during January-June 2025. Leasing by the engineering & manufacturing sector was primarily driven by US, and EMEA firms with a combined share of over 66%.
About 15.2 mn. sq. ft space was leased by GCCs during January -June 2025, accounting for ~ 40% share in overall leasing. Bengaluru recorded 5.2 mn. sq. ft. GCC leasing followed by Chennai at 2.7 mn. sq. ft. and Delhi-NCR at 2.6 mn. sq. ft. during this period.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "The first half of 2025 has been a record period for office leasing in India, pointing to a resilient and dynamic growth curve. We are witnessing not just an uptick in numbers, but a profound transformation driven by strong demand and strategic portfolio expansions from both domestic and global enterprises. All metro cities have collectively contributed to this record leasing, solidifying their status as attractive economic hubs. This sustained momentum, coupled with significant capital inflows into high-quality, institution-grade developments, underscores the unwavering global confidence in India’s long-term growth story."
On a quarterly basis, office sector leasing in April to June 2025, increased by over 8% y-o-y, recording 20.3 mn. sq. ft. This period also saw a surge in new completions with 17.1 mn. sq. ft. of incoming supply, a 27% y-o-y increase.
In terms of absorption, Bengaluru led the office activity with 5.1 mn. sq. ft. followed by Mumbai with 3.7 mn. sq. ft, Chennai and Pune recorded 3 mn. sq. ft each. Supply additions in Pune, Bengaluru, and Hyderabad accounted for a 73% share.
The report further highlights that technology companies held the highest share in office leasing during Apr-Jun’25 with a 26% share, followed by BFSI firms with 21% share, flexible space operators 19% share, research, consulting & analytics (RCA) companies with 8% share during the same period. Engineering & manufacturing (E&M) and aviation sectors accounted for 5% share each, and life sciences accounted for 3% share.
For the April – June 2025 period, leasing by GCCs was recorded at 7.3 mn. sq. ft., accounting for a 36% share in overall leasing. Bengaluru led the GCC leasing during the quarter with a 27% share, followed by Chennai at 21%, Pune at 20% and Hyderabad at 15%. Delhi-NCR and Mumbai had a 12% and 4% share in leasing, respectively.
Office leasing in green-certified assets accounted for 77% of total office leasing during the quarter, (15.6 mn. sq. ft.) while 93% of new supply (16.0 mn. sq. ft.) in Apr-Jun’25 was green-certified. This underscores the increasing commitment of both occupiers and developers to environmental, social, and governance (ESG) principles and sustainability initiatives. Bengaluru led with a 29% in leasing in green-certified assets, followed by Chennai at 16% and Hyderabad at 14% share in overall leasing.
Ram Chandnani, Managing Director, Leasing, CBRE India, said, "It's clear that the office market's vibrancy is rooted in specific sectoral strengths and a fundamental shift in occupier priorities. Technology firms, particularly those at the forefront of AI, ML, and cloud computing, remain core drivers of demand for office space, complemented by growth from the BFSI and Engineering & Manufacturing sectors. Occupiers are now increasingly prioritizing employee experience, seeking out premium, LEED-certified spaces that champion well-being, flexibility, and collaboration. The GCC expansion showcases India as a growing market going beyond metro cities now."
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