India’s Office Market Hits Record Absorption In 2025, CBRE Reports

India’s office market reached a record 60 million sq. ft. leased in the first nine months of 2025, led by technology companies and with over 70% of new supply green-certified.

India’s office market continued its strong growth trajectory during the first nine months of 2025, achieving the highest-ever absorption for this period. Demand for office space remained healthy across industries, fueled by portfolio expansions, workplace optimization, and a sustained preference for premium-quality assets, according to CBRE.

These trends show the resilience of occupiers’ sentiment, supported by India’s steady economic growth and a deep talent pool, as confirmed by the recent CBRE India Office Occupier Survey where over 70% of respondents indicated plans to expand their office footprints.

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Leasing Activity Rises Modestly, Led by Key Cities

Office leasing activity grew by 2% year-over-year, reaching approximately 60 million square feet in the first nine months of 2025. The growth was largely driven by Bengaluru, Mumbai, and Delhi NCR, which collectively accounted for about 60% of the total absorption.

In the third quarter alone, leasing totaled 19.9 million square feet, with the same cities maintaining their dominance in office space demand.

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New Office Supply Expands Across Major Hubs

New office completions increased by 10% compared to the previous year, reaching 41 million square feet in the first nine months of 2025. Pune, Bengaluru, and Delhi NCR were the main contributors to this growth.

In the third quarter, 13.6 million square feet of new space was delivered, with Delhi NCR, Bengaluru, and Hyderabad accounting for 61% of the new supply.

Sustainability Drives Development and Leasing

Sustainability remains a key focus for both developers and occupiers. More than 70% of the new office space completed in the third quarter was green-certified, and approximately 73% of the leasing activity took place in such environmentally certified buildings. This is indicative of the increasing importance placed on sustainable workplaces in India’s office market.

Technology and Flexible Workspaces Lead Demand

Technology companies were the largest occupiers in the third quarter, making up 24% of office space take-up. They were followed by flexible workspace operators at 21% and engineering and manufacturing firms at 15%.

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Over the first nine months of the year, technology, flexible space, and BFSI sectors collectively accounted for 60% of total leasing activity.

Domestic Firms Dominate Office Leasing

Domestic companies continued to lead office leasing in the third quarter, accounting for 46% of absorption, followed by American firms at 33%. Domestic demand remained the primary driver throughout the first nine months of 2025, underscoring the strength of India’s internal market.

Global Capability Centers Play a Growing Role

Global Capability Centers (GCCs) accounted for 38% of office leasing in the third quarter, with technology and engineering and manufacturing companies responsible for over half of this volume. GCCs remain a critical segment contributing to overall office demand in India.

Positive Outlook Supported by Market Confidence

The ongoing momentum in office space absorption, supply growth, and emphasis on sustainability aligns with the CBRE occupier survey results, which show that over 70% of respondents plan to expand their office portfolios. Supported by India’s resilient economy and a strong talent base, the office market is expected to sustain its growth through the remainder of 2025.