India’s office market clocks third straight record year in 2025, GCCs stay in driver’s seat

India’s office leasing activity scaled a fresh peak in 2025 for the third consecutive year, touching 82.6 million sq. ft., even as new supply rose to an all-time high of 58.9 million sq. ft., according to CBRE’s latest report.

In its report titled CBRE India Office Figures Q4 2025, released on January 6, CBRE said leasing activity in 2025 rose by about 1% year-on-year, driven by sustained demand from technology companies, flexible workspace operators and BFSI corporates, which together accounted for nearly 60% of total absorption during the year.

Bengaluru, Mumbai and Delhi-NCR led office space take-up, collectively accounting for around 61% of total absorption. Demand was underpinned by steady investments and portfolio expansion by both global and domestic companies, supported by continued digitisation efforts.


According to Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa at CBRE, India’s office market continues to exhibit strong fundamentals despite global geopolitical uncertainties and challenges around cross-border talent mobility.

“Global firms are poised to expand their footprints in India through their Global Capability Centres (GCCs), buoyed by the country’s inherent advantages, including a highly skilled talent pool and cost differentials. These centres are projected to drive ~35-40% of total space absorption in 2026, with new growth expected from mid-market entities, global unicorns, and emerging sectors. Despite existing uncertainties, global firms continue to view India as a strategic destination for their multi-functional hubs delivering innovation and enterprise leadership,” he said.

Leasing momentum strengthened in the October–December quarter, with absorption rising 15% quarter-on-quarter to 22.2 million sq. ft. Bengaluru led quarterly leasing with a 24% share, followed by Mumbai at 22% and Delhi-NCR at 18%.

GCCs continued to be a key demand driver, accounting for about 39% of leasing activity in Q4 2025, or roughly 8.5 million sq. ft. Bengaluru dominated GCC leasing with a 44% share, followed by Hyderabad at 25% and Delhi-NCR at 13%. While U.S. companies remained the primary drivers of GCC demand, occupiers from EMEA and APAC regions increasingly set up operations in India, encouraged by the success of existing centres and the rapid expansion of digitally skilled talent.

Ram Chandnani, Managing Director, Leasing, CBRE India, said that major markets such as Bengaluru, Delhi-NCR, Mumbai and Hyderabad are expected to retain their leadership in office space absorption in 2026.

“Additionally, Chennai and Pune are likely to continue gaining traction, fuelled by their healthy supply pipelines and diversified talent pools. Leasing momentum is also anticipated to expand to tier-II cities as occupiers seek to strategically grow their footprints beyond the gateway hubs,” he added.

Established sectors such as engineering & manufacturing and BFSI are expected to remain active, while niche segments including life sciences, semiconductors and automotive are also likely to see sustained expansion. Flexible workspace operators are projected to record robust growth as corporates increasingly integrate such formats into long-term strategies to improve scalability, cost efficiency and risk management.

On the supply side, new completions rose 10% year-on-year in 2025 to reach a peak of 58.9 million sq. ft. In Q4 2025 alone, supply increased 10% quarter-on-quarter to 16.6 million sq. ft. Developers are increasingly delivering fully amenitised, premium and green-certified office spaces aligned with occupiers’ focus on employee experience, operational scalability and long-term business goals.

Sustainability has emerged as a defining feature of premium office developments, with LEED and IGBC certifications increasingly viewed as minimum requirements to meet ESG commitments. Developers are now moving beyond certifications by incorporating energy-efficient designs, renewable energy systems and sustainable construction practices aligned with BRSR norms and long-term operating efficiency.

A significant portion of new supply in 2026 is expected to be green-certified, reinforcing the sector’s shift towards environmentally responsible development. Magazine said the market is set for a steady pipeline of premium, institutional-grade assets next year, though the availability of high-quality, well-amenitised supply with strong health and wellness features in prime locations will be critical to sustaining demand.

“Occupiers’ sustained preference for premium, ESG-compliant assets is expected to drive further vacancy compression and rental appreciation across key office locations throughout 2026,” Chandnani added.