India’s office market delivered a blockbuster performance in 2025, with gross leasing touching an all-time high of 86.4 million square feet, marking a 20 per cent year-on-year increase, Knight Frank said in its flagship report India Real Estate: Office and Residential Market (H2 2025). Leasing volumes also exceeded the pre-pandemic peak of 2019 by 43 per cent, underscoring the sustained expansion in occupier demand.
Bengaluru led the cycle, recording a historic 28.7 million square feet of leasing, followed by Hyderabad (11.4 million square feet), NCR, Pune and Chennai.
“India’s office market decisively surpassed its previous peak in 2025, signalling not just cyclical recovery but a structural shift in how global enterprises view India,” said Shishir Baijal, international partner, chairman and managing director, Knight Frank India.
Furthermore, leasing momentum remained strong through the second half of the year, with H2 2025 absorption at 37.5 million square feet, second only to the exceptionally high volumes recorded in H1 2025. GCCs emerged as the largest occupier segment, accounting for 38 per cent of total absorption, or nearly 32 million square feet, establishing India as a global hub for research, engineering and high-value services.
However, supply lagged behind demand. New office completions rose a modest 9 per cent year-on-year to 54.8 million square feet, led by Bengaluru (16.2 million square feet) and Pune. The imbalance tightened vacancies to 15.1 per cent, strengthening landlords’ pricing power. Rents rose across all markets, led by NCR and Hyderabad (10 per cent year-on-year), followed by Mumbai and Bengaluru (6 per cent each).
Rajat Kapur, regional managing director, North India & Middle East, The Executive Centre, said the surge in GCC demand is already reshaping leasing dynamics. “Markets such as Gurugram, Hyderabad and Bengaluru are witnessing sharp absorption and rental growth amid limited new supply. With India cementing its position as a global GCC hub, the flight to quality sets the stage for 2026 to surpass 2025 milestones,” he said.
Karan Chopra, chairman and CO- CEO, Table Space, said, “The 20 per cent year-on-year growth in office leasing to 86.4 million square feet reflects a clear shift in how global enterprises are anchoring long-term operations in India. At Table Space, we are seeing this demand led strongly by GCCs and large corporations that are scaling beyond single-city footprints and committing to India as a core innovation and delivery hub.”
On the other hand, the residential market remained resilient but showed signs of consolidation. Housing sales across the top eight cities stood at about 3.48 lakh units in 2025, marginally lower by 1 per cent annually, while new launches declined 3 per cent year-on-year to 3.62 lakh units, reflecting calibrated supply additions. Mumbai retained its leadership with 97,188 units sold, while NCR and Pune saw moderation.
Price appreciation remained noticeable, led by NCR, followed by Hyderabad, Bengaluru and Mumbai, driven by higher-value launches and rising input costs. Homes priced above ₹1 crore accounted for nearly 50 per cent of total sales, underscoring increasing premiumisation.
“This structural shift towards higher-value homes reflects evolving consumer aspirations and a preference for trusted brands,” said Prashant Bindal, chief sales officer, Lodha Group, adding that the trend reinforces developers’ focus on quality-led, lifestyle-driven projects.
With office demand anchored by GCCs and housing markets transitioning into a steadier, premium-led phase, Knight Frank expects 2026 to be defined by stability, selective growth and disciplined supply across both segments.
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