India’s office leasing surges to 60 million sqft in 9 months

7India’s office market maintained its growth trajectory this year, with January-September 2025 achieving the highest-ever absorption for the first nine months of the year at a record ~60 million sq. ft. (up by 2 per cent Y-o-Y), according to CBRE survey.

Enquiries for new spaces have remained healthy across industries, underscoring the resilience of occupiers’ sentiments in the sector, led by portfolio expansion, workplace optimisation, and the sustained preference for ‘flight-to-quality’ assets.

India’s office real estate market sustained its growth momentum in Q3 2025 (July-September), propelled by continued expansion from domestic corporates and global firms scaling their GCC operations.

This strong activity witnessed in 9M 2025 (January-September) drove office space take-up to the highest level ever recorded for the first nine months of the year.

Office leasing was spearheaded by Bengaluru, Mumbai, and Delhi-NCR.

These cities together accounted for about 60 per cent of the total space take-up. Concurrently, in Q3 2025, absorption touched 19.9 million sq. ft., driven by these same gateway cities.

New office supply grew by 10% Y-o-Y to reach 41 million sq. ft. in 9M 2025, primarily led by Pune, Bengaluru, and Delhi-NCR. In Q3 2025, 13.6 million sq. ft. of new development completions were witnessed, with Delhi-NCR, Bengaluru, and Hyderabad collectively accounting for a share of 61 per cent.

Reflecting developers’ and occupiers’ continued focus on sustainability, over 70% of the newly completed office space during Q3 2025 was green-certified, while about 73% of the leasing took place in such assets.

During the quarter, technology companies led office space take-up with a 4% share, followed by flexible space operators at 21% and engineering and manufacturing (E&M) firms at 15%. In 9M 2025, technology companies, flexible space operators, and BFSI corporates drove the leasing activity with a cumulative share of 60%.

Domestic firms continued to dominate office space absorption during the quarter, with a share of 46%, followed by American companies at 33%. Indian companies led the leasing activity in 9M 2025 as well.

Global Capability Centres (GCCs) accounted for 38% of the overall office space absorption in Q3 2025, with tech and E&M companies contributing to over half of the total GCC leasing volume.

According to Knight Frank India survey, office demand continues to outstrip supply and GCC continue to lead the sector.

While third-party IT services are on recovery path, strong rental growth is seen across markets. India’s office stock has surpassed 1 billion sqft.

“While conventional leasing accounted for 84% of office demand in Q3 2025, led by technology firms–largely driven by the expansion of GCCs in India, Bengaluru drove the quarterly demand, registering 4.7 million sq ft of space uptake.

Pune, Mumbai and Chennai, particularly witnessed at least 40% rise each in leasing activity on an annual basis in Q3 2025.

The overall quarterly new supply rose by 15% YoY.

Pune with majority of the supply additions surged ~4X YoY, followed by Bengaluru.

Overall vacancy largely remained rangebound, while rentals continued to rise,” said Colliers in its quarter report on office market.

I live in Gulf and would like to transfer real estate assets in India to my wife after my demise. What is the best option available to effect transfer of assets? Nikunj Sampat, Sharjah.

The ideal way is to transfer through a Will and registering it. It does not attract any stamp duty and other levies while inheriting the assets. All it involves is only a nominal registration fee.

I plan to invest in partnership firm promoted by my friend in Bengaluru. Can an NRI invest in partnership firm involved in real estate development. Ravi Goel, Dubai.

An NRI can invest in the capital of a firm on non-repatriation basis. However, the Indian firm should not be engaged in any agricultural/plantation or real estate business or print media sector.

But a firm can invest in real estate development activity like residential or commercial development.

The amount invested shall not be eligible for repatriation outside India.

However, you can seek prior permission of Reserve Bank for investment in firm with repatriation option.

The application will be decided in consultation with the government of India.