New Delhi, July 3 India’s commercial real estate market witnessed strong growth in the first half of 2025, with net office leasing across the top seven cities rising by 40 per cent year-on-year (YoY), a new report said on Thursday.
According to data compiled by Anarock Research, net office absorption grew from around 19.08 million sq. ft. in H1 2024 to approximately 26.8 million sq. ft. in H1 2025.
New office supply also increased by 25 per cent during the same period, reaching nearly 24.51 million sq. ft.
Experts say the strong office market performance reflects India’s steady economic growth and its rising global profile as a business destination.
Peush Jain, Managing Director, Commercial Leasing & Advisory at Anarock Group, said the country continues to attract large-scale office leasing by global capability centres (GCCs) and US-based corporates.
He also noted that India’s economic stability stands in contrast to policy uncertainty in the US, making it an increasingly attractive destination for long-term investments.
Bengaluru led the leasing activity with around 6.55 million sq. ft. of office space absorbed in H1 2025 -- a 64 per cent increase compared to 4 million sq. ft. in the same period previous year.
Pune stood out with the highest annual growth in net absorption, soaring by 188 per cent to 3.8 million sq. ft., up from 1.32 million sq. ft. the previous year.
Kolkata, however, was the only city among the top seven to see a decline in leasing, dropping 51 per cent to just 0.45 million sq. ft.
In terms of new office space completions, Bengaluru again took the lead by adding approximately 6.91 million sq. ft. in H1 2025, a 26 per cent rise from the previous year.
Pune posted an exceptional 533 per cent jump in new supply, going from just 0.9 million sq. ft. in H1 2024 to over 5.7 million sq. ft. this year, the report stated.
Sector-wise, the IT/ITeS sector continued to drive demand, accounting for 29 per cent of overall office leasing.
This was followed by the coworking sector at 22 per cent and BFSI at 18 per cent.
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