India office leasing hits a record 282 lakh sq ft in Q4 FY25 on GCC demand

India's office market is experiencing exceptional growth, with leasing activity in the top eight cities rising by 74% in the January- March 2025 quarter. The gross leasing of office space reached an all-time high of 282 lakh square feet during Q4 FY25, driven by strong demand from global capability centres (GCCs), the BFSI (banking, financial services, and insurance) sector, technology firms, and data center businesses.

Bengaluru Leads Growth in Office Leasing

Among the eight major cities, Bengaluru saw the most dramatic increase, with office space leasing more than tripling to 127 lakh square feet during the January- March 2025 period, compared to 35 lakh square feet in the same quarter the previous year. Notably, 58% of the office space leased in Bengaluru was accounted for by pre-commitments, indicating strong confidence from businesses in the city’s commercial real estate market.

This surge in leasing activity underscores Bengaluru's position as a key hub for GCCs, which are driving much of the demand for office spaces in India. With a thriving tech ecosystem, Bengaluru continues to attract global businesses looking to establish or expand their operations in India.

Other Cities Experience Significant Growth

In addition to Bengaluru, other major cities also recorded strong growth in office leasing. Hyderabad saw a 31% rise in leasing activity, reaching 40 lakh square feet, up from 30 lakh square feet in the previous year. Pune experienced an impressive 91% increase in demand, with office space leasing jumping from 19 lakh square feet to 37 lakh square feet.

Mumbai also saw a solid 24% increase in office leasing, with 35 lakh square feet transacted, compared to 28 lakh square feet in the same period last year. Chennai experienced a 56% increase in leasing, with 18 lakh square feet of office space leased, up from 12 lakh square feet.

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