India’s Office Leasing Jumps 40% in H1 2025, Bengaluru and Pune Lead Growth: Anarock
India’s commercial office space market recorded a robust performance in the first half of 2025, with net office leasing rising 40% year-on-year to 26.8 million sq. ft., up from 19.08 million sq. ft. during the same period last year, according to a report by Anarock Property Consultants.
Among the top seven cities, Bengaluru led the net office absorption, climbing to 6.55 million sq. ft.—a 64% increase from H1 2024. Pune posted the steepest growth, with a 188% jump from 1.32 million sq. ft. to 3.8 million sq. ft. in the same period.
Kolkata was the only market to see a decline, with leasing falling by 51% year-on-year to 0.45 million sq. ft.
Supply Side Growth: Pune Sees a 533% Spike
The first half of 2025 also saw a 25% increase in new office supply across the top seven cities, growing from 19.65 million sq. ft. to 24.51 million sq. ft.
Bengaluru led again in total new supply, adding 6.91 million sq. ft., a 26% jump. Pune outpaced others in terms of percentage growth, with new completions surging 533% from just 0.9 million sq. ft. in H1 2024 to over 5.7 million sq. ft. in H1 2025.
Conversely, MMR and Hyderabad witnessed dips in new office stock. MMR’s new supply dropped 45% to 1.9 million sq. ft., while Hyderabad saw a 17% decline to 4.7 million sq. ft.
GCCs, IT, and Coworking Spaces Fuel Demand
According to Peush Jain, Managing Director – Commercial Leasing and Advisory at Anarock Group, India’s commercial office sector outpaced residential in H1 2025, driven by strong economic fundamentals and continued expansion by Global Capability Centres (GCCs).
The IT/ITeS segment continued to dominate leasing activity with a 29% share, followed by coworking operators at 22%, and BFSI at 18%. E-commerce and consultancy firms also saw a marginal increase, while leasing by manufacturing and industrial sectors saw a decline.
Vacancy Rates Drop, Rentals Edge Up
The average office vacancy rate across the top cities dropped to 16.3%. However, Hyderabad continued to register the highest vacancy at 26.6%, followed by MMR.
Meanwhile, average monthly rentals across major markets increased 5%, rising from ₹84/sq. ft. in H1 2024 to ₹88/sq. ft. in H1 2025. Chennai led rental growth, clocking a 6% Y-o-Y increase.
