India Market Monitor Q2 2025 - Office

The office sector continued its strong momentum in Q2 2025, with steady absorption observed across key markets. Office leasing activity reached 20.3 million sq. ft. while new office supply of approximately 17.1 million sq. ft. became operational during the quarter. Space take-up by domestic corporates and global capability centres (GCCs) played a pivotal role in boosting office absorption across cities.

Building on the robust momentum of the past two years, India’s office sector is set to maintain its growth trajectory through 2025, underpinned by strategic portfolio expansion by both domestic and global enterprises. Reinforcing the positive outlook, the sector continues to witness committed investments into completed and under-construction assets.

The January to June 2025 period (H1 2025) recorded continued office space absorption, largely driven by expansionary leasing from GCCs, domestic corporates, flexible space operators, BFSI players, and technology-led businesses. Looking ahead to the second half of 2025, the demand for quality spaces is expected to remain resilient as occupiers consolidate and scale their operations.

Core markets, including Bengaluru, Hyderabad, Delhi-NCR, and Mumbai, are poised to maintain their dominance in leasing activity. Simultaneously, cities such as Chennai and Pune are expected to continue gaining traction, underpinned by robust supply pipelines, deep talent pools, and occupiers' strategic intent to diversify beyond traditional gateway cities. This expansionary movement is also anticipated to extend into tier-II cities as occupiers seek strategic growth opportunities.

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