India’s Office Leasing Surges to All-Time High on Strong GCC Demand

By Ajjay Bhagyakar | Published by Griha Realty Source: Business Standard

Source: Business Standard

India’s commercial real estate market delivered a blockbuster performance in 2025, achieving a record-breaking gross office leasing of 86.4 million sq ft — the highest annual figure ever recorded. This represents a 20% year-on-year increase and a 43% jump above pre-pandemic levels, underscoring robust occupier confidence and rapid market evolution.

GCCs Lead Demand, Redefine Office Leasing Trends

The standout feature of this exceptional growth was the dominance of Global Capability Centres (GCCs). These corporate hubs accounted for 38% of total office absorption, or nearly 32 million sq ft, making them the largest occupier segment in 2025. This surge reflects India’s strengthening position as a global destination for high-value services, research, and technology operations.

Bengaluru retained its leadership as the nation’s top office market, with an unprecedented 28.7 million sq ft leased during the year — a 59% increase powered largely by foreign and GCC occupiers. Hyderabad, Delhi-NCR, Pune and Chennai also crossed major leasing milestones, contributing to the nationwide momentum.

Supply Lagging Demand, Vacancies Tighten

Despite record leasing, new office space completions rose only modestly, by about 9% to 54.8 million sq ft, resulting in tight vacancy levels of around 15.1%. This imbalance between strong demand and limited supply has boosted landlord pricing power, leading to rental growth across major markets — especially in NCR and Hyderabad.

High-quality Grade-A office space continued to be the preferred choice for occupiers, with over 90% of leasing activity concentrated in modern premium assets, reflecting a strong preference for efficient, sustainable, and strategically located workplaces.

Outlook: Momentum to Continue in 2026 ( India’s Office Leasing Surges to All-Time High on Strong GCC Demand )

Industry experts believe the strong GCC-led demand is not just cyclical but represents a structural shift in how global enterprises view India’s commercial real estate market. With many companies scaling their operations and committing to long-term leases, the stage is set for continued growth in 2026, even as supply efforts aim to catch up.

This remarkable trend highlights India’s emergence as a dynamic, resilient office market — driven by innovation, global business interest, and the rising attractiveness of Indian cities as corporate hubs. India’s Office Leasing Surges to All-Time High on Strong GCC Demand