India Market Monitor Q1 2025 – Office

India’s office sector demonstrated continued resilience in Q1 2025, with steady absorption observed across key markets. Office leasing activity reached ~18 million sq. ft., while supply of ~9.7 million sq. ft. became operational during the quarter. Space take-up by global capability centres (GCCs) played a pivotal role in strengthening office absorption across cities.

Following two years of record-breaking absorption levels, the country’s o­ffice sector is anticipated to experience continued expansion in 2025, likely to be driven by the strategic expansion of portfolios by domestic and global firms. The technology sector is expected to remain a key demand driver, while the BFSI and E&M sectors are likely to continue expanding, propelled by their thrust towards digitalisation initiatives.

Expansion of GCCs, driven by consolidation and new entrants, is projected to account for 35-40% of o­ffice space absorption in key Indian cities in 2025, while supportive state policies would potentially encourage growth in smaller cities. Furthermore, sustained capital investment underpins expectations for a steady influx of quality institutional projects in the off­ice sector.

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