India Office Leasing Hits Record 86.4 Mn Sq Ft in 2025: Knight Frank

09 Jan 2026 CW Team

India’s office market delivered a landmark performance in 2025, with annual gross leasing touching an all-time high of 86.4 million sq ft, according to a recent report by Knight Frank India. This represents a 20 per cent year-on-year increase and a 43 per cent rise over the pre-pandemic peak of 2019, underlining sustained occupier confidence across major markets.

Bengaluru led the country with 28.7 million sq ft of leasing, its highest-ever annual volume. Hyderabad, the National Capital Region, Pune and Chennai also crossed the 10 million sq ft mark, making it five out of eight key markets to achieve double-digit annual leasing. Global Capability Centres emerged as the largest occupier segment, accounting for 38 per cent of total absorption, reinforcing India’s position as a global hub for research, development and enterprise operations.

Leasing momentum remained strong in the second half of the year, reflecting consistent demand and long-term commitments by occupiers. While new office completions rose by a modest 9 per cent to 54.8 million sq ft, supply lagged demand, leading to firm rental growth across all major markets. NCR and Hyderabad recorded rental growth of around 10 per cent, followed by Mumbai and Bengaluru at about 6 per cent each.

The report noted that Grade A office assets continued to dominate leasing activity, driven by occupiers’ preference for modern, efficient and sustainable workspaces. With expanding GCC activity, renewed traction in third-party IT services and limited quality supply, India’s office market is well positioned to sustain momentum into 2026.

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