Office leasing up 40% in H1 2025, Bengaluru, Pune lead demand: Anarock

Net absorption grew to 26.8 mn square feet across top 7 cities; Pune saw 188% rise, Bengaluru remained the leader in both new supply and total office space leased

India’s net office leasing rose 40 per cent year-on-year (Y-o-Y) in the first half of 2025, reaching 26.8 million square feet, up from 19.08 million square feet in H1 2024, according to a report by real estate consultancy firm Anarock.

 

Among the top seven cities, Bengaluru recorded the highest net office absorption at 6.55 million square feet in H1 2025, up from 4 million square feet a year ago—a 64 per cent increase. Pune saw the sharpest growth, rising 188 per cent to 3.8 million square feet from 1.32 million square feet in the same period last year.

 

Kolkata was the only city to report a decline in leasing, with absorption falling 51 per cent to 0.45 million square feet in H1 2025 from 0.93 million square feet in H1 2024. 

Bengaluru leads new office supply; Pune sees highest jump

New office completions in the top seven cities increased 25 per cent year-on-year, from 19.65 million square feet in H1 2024 to 24.51 million square feet in H1 2025.

 

Bengaluru once again led the market in terms of new supply, with 6.91 million square feet added—up 26 per cent from 5.5 million square feet last year.

 

Pune saw the highest percentage jump, recording a 533 per cent rise in new office supply—from just 0.9 million square feet in H1 2024 to over 5.7 million square feet in H1 2025.

 

In contrast, Mumbai Metropolitan Region (MMR) and Hyderabad recorded year-on-year declines in new supply. MMR added 1.9 million square feet, down 45 per cent from 3.47 million square feet in H1 2024. Hyderabad saw a 17 per cent dip, with new completions totalling 4.7 million square feet.

GCCs, IT, and coworking firms drive demand

Peush Jain, managing director – commercial leasing and advisory, Anarock Group, said, “The office real estate market was ahead of its residential counterpart in H1 2025. Both net absorption and new office completions saw high growth, largely because of India's enduring economic strength. Also, overall office leasing by global capability centres (GCCs) across cities continues to grow in 2025, and large US-based corporates continue to lease large spaces across Indian cities.” 

 

IT/ITeS firms dominated leasing with a 29 per cent share, followed by coworking at 22 per cent and BFSI at 18 per cent. Consultancy and e-commerce sectors also saw a 1 per cent increase in demand share compared to H1 2024, while manufacturing and industrial sectors declined.

Vacancy drops, rentals inch up

The average office vacancy rate across the top seven cities fell to 16.3 per cent in H1 2025. However, MMR and Hyderabad recorded higher vacancy levels, with Hyderabad continuing to have the highest at 26.6 per cent.

 

Average monthly office rentals rose by 5 per cent from ₹84/sq. ft. in H1 2024 to ₹88/sq. ft. in H1 2025. Chennai led rental growth among cities, with a 6 per cent year-on-year increase.