NEW DELHI: India’s office market continued its upward momentum in 2025, with the top seven cities seeing Class A office leasing of over 70 million sq ft for the first time, driven by strong year-end momentum and continued occupier confidence, Colliers India said.Office leasing during the year amounted to approximately 71.5 million square meters, representing an increase of 6% year-on-year. The last quarter played a crucial role, with quarterly demand crossing the 20 million square meter mark, up 20% from the previous quarter, underscoring strong major deal closings and expansion activities.
Bengaluru remained the largest office market, accounting for almost a third of total leasing by 2025, with an absorption of 22.1 million square feet. Other major markets also saw healthy demand, with Delhi NCR, Hyderabad, Chennai and Mumbai each contributing 13 to 16% to total rentals, reflecting users’ growing preference for multi-city expansion.
The highest quarterly rent ever recorded at 20.6 million square meters was recorded in the October-December quarter. Bengaluru alone leased a record 8.1 million sq ft during the quarter, followed by Delhi NCR with 4.2 million sq ft. Together, the two cities accounted for almost 60% of total rentals in the fourth quarter of 2025.On the supply side, new office completions in the seven largest cities remained stable at approximately 56.5 million square meters in 2025, an increase of 5% compared to the previous year. Bengaluru, Hyderabad and Pune led the supply additions, each recording over 10 million sq ft of new completions and together accounting for almost 70% of annual supply.
However, quarterly supply fell to 15.1 million square meters in Q4 2025, down 6% year-on-year, with five of the seven major cities seeing lower completions during the quarter. As demand continued to outpace supply, overall vacancy levels fell by 49 basis points, while average office rents in key markets increased by as much as 15% year-on-year.
Technology companies remained the biggest demand driver, accounting for 37% of conventional office leasing during the year. Conventional office space absorption reached approximately 58.5 million square feet in 2025, with technology companies alone leasing nearly 22 million square feet, representing a 32% increase year-on-year. BFSI, engineering and manufacturing and consultancy firms together accounted for more than 40% of conventional leasing, highlighting the broad demand across all sectors.
Flexible workspace operators also continued to expand, leasing around 13 million sq ft of Grade A office space in 2025, slightly more than in 2024. Flexspaces accounted for almost 18% of total office leasing during the year, led by Bengaluru and Delhi NCR, with strong uptake also in Pune and Chennai.
Global Capability Centers (GCCs) emerged as a key growth driver, accounting for more than 40% of total office leasing by 2025. GCCs leased nearly 30 million square feet during the year, supported by India’s skilled talent pool, cost advantages and a growing role in advanced technology, analytics and product development.
According to Colliers, the office market outlook for 2026 remains positive, supported by the continued expansion of the GCC, demand for technology and BFSI, increasing adoption of flexible workspace models and the continued preference for high-quality, sustainable office assets in major cities.
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