According to real estate firm Anarock, India’s net office leasing across the top seven cities surged by 40% year-on-year, reaching 26.8 million sq ft in H1 2025, up from 19.08 million sq ft in H1 2024
Bengaluru & Pune Take the Lead
- Bengaluru recorded 6.55 million sq ft in net absorption, up 64% from the previous year
- Pune saw a staggering 188% year-on-year jump to 3.8 million sq ft
- Kolkata bucked the trend with a 51% drop, hitting just 0.45 million sq ft Business Standard
New Supply Also Picked Up
New office completions across these cities rose by 25%, reaching 24.51 million sq ft in H1, up from 19.65 million sq ft in H1 2024. Notably, Pune’s new supply soared by 533%, from 0.9 to 5.7 million sq ft
Improving Vacancy & Higher Rents
- Overall vacancy rates eased slightly to 16.3% from 16.7% year-on-year
- Average rentals rose by 5%, reaching ₹88/sq ft/month—with Chennai, Bengaluru, and NCR leading the uptick
What’s Driving Demand?
- Tech & IT-ITeS firms held the largest share at 29%, followed by co-working operators (22%) and BFSI (18%)
- Colliers reports that technology firms alone powered 40% of office leasing, with large deals (over 100,000 sq ft) making up 51% of activity, totaling 17.2 million sq ft
Market Implications
| Indicator | Insight |
|---|---|
| Absorption | Strong YoY growth across major cities, especially in Bengaluru and Pune |
| Supply | Responsive growth with big jumps in new completions, particularly in Pune |
| Vacancy & Rents | Lower vacancy and rising rental rates indicate strong demand |
| Demand Drivers | Technology sector and co-working spaces remain dominant occupiers |
| Deal Size | Significant share from mega leases, reflecting confidence among large enterprises |
Final Summary
India’s office real estate market experienced a robust 40% surge in net leasing in H1 2025. Tech players and GCCs emerged as the biggest drivers of demand, with Bengaluru and Pune leading the charge. This uptick underscores rising occupier confidence, expansion from global and domestic firms, and a favorable supply response.
