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

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

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.  

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.  

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement