CBRE South Asia has announced the findings of its report, CBRE India Office Figures Q2 2025, which highlights the office sector recording the highest-ever leasing as well as supply in the first half of CY 2025. Leasing activity during this period touched 39 million sq ft – a 3 per cent y-o-y growth – and new office supply surged to the highest ever level of 27.7 million sq ft – a 19 per cent y-o-y increase during January-June 2025. Bengaluru led India’s office space absorption in the first half of CY 2025, says the report, capturing a 27 per cent share, equivalent to 10.5 million sq ft. Mumbai and Delhi-NCR followed, accounting for 17 per cent (6.6 million sq ft) and 16 per cent (6.1 million sq ft), respectively. Collectively, these three major markets accounted for about 60 per cent of the total office space leased between January and June 2025.
“The first half of 2025 has been a record period for office leasing in India, pointing to a resilient and dynamic growth curve,” says Anshuman Magazine, chairman & CEO India, South-East Asia, the Middle East & Africa, CBRE. “We are witnessing not just an uptick in numbers, but a profound transformation, driven by strong demand and strategic portfolio expansions from both domestic and global enterprises. All metro cities have collectively contributed to this record leasing, solidifying their status as attractive economic hubs. This sustained momentum, coupled with significant capital inflows into high-quality, institution-grade developments, underscores the unwavering global confidence in India’s long-term growth story.”
“It’s clear that the office market’s vibrancy is rooted in specific sectoral strengths and a fundamental shift in occupier priorities,” affirms Ram Chandnani, MD, leasing, CBRE India. “Technology firms, particularly those at the forefront of AI, ML and cloud computing, remain core drivers of demand for office space, complemented by growth from the BFSI
and engineering & manufacturing sectors. Occupiers are now increasingly prioritising employee experience, seeking out premium, LEED-certified spaces that champion well-being, flexibility and collaboration. The GCC expansion showcases India as a
growing market, going beyond metro cities now”.
Primary drivers Technology firms were the primary drivers of office leasing during January-June 2025, securing 9.6 million sq ft, with a 25 per cent share in the total leasing. BFSI and flexible space operators followed, accounting for 23 per cent and 17 per cent, respectively. Cumulatively, technology, BFSI and flexible space operators led the leasing activities, with a cumulative share of 64 per cent during January-June 2025.
During this period, global corporates (including those from the US, EMEA, & APAC) led the absorption with 53 per cent, while domestic firms recorded 47 per cent of absorption during the same period. Corporates from the US (led by financial services and investment firms) accounted for a share of 47 per cent of the total leasing by the BFSI sector during January-June 2025. Leasing by engineering & manufacturing sector was primarily driven by the US and EMEA firms, with a combined share of over 66 per cent.
About 15.2 million sq ft space was leased by GCCs during January-June 2025, accounting for about 40 per cent share in overall leasing. Bengaluru recorded 5.2 million sq ft, followed by Chennai at 2.7 million sq ft and Delhi-NCR at 2.6 million sq ft during this period.
On a quarterly basis, office sector leasing in January-June 2025 increased by over 8 per cent y-o-y, recording 20.3 million sq ft. This period also saw a surge in new completions, with 17.1 million sq ft of incoming supply – a 27 per cent y-o-y increase.
In terms of absorption, Bengaluru led the office activity with 5.1 million sq ft, followed by Mumbai with 3.7 million sq ft, while Chennai and Pune recorded 3 million sq ft each. Supply additions in Pune, Bengaluru, and Hyderabad accounted for a 73 per cent share.
The CBRE report further highlights the technology companies’ holding the highest share in office leasing during April-June 2025, with a 26 per cent share; followed by BFSI firms, with 21 per cent share; flexible space operators, 19 per cent share; and research, consulting & analytics companies, with 8 per cent share during the same period. Engineering & manufacturing and aviation sectors accounted for 5 per cent share each and life sciences accounted for 3 per cent share.
For April-June 2025, leasing by GCCs was recorded at 7.3 million sq ft, accounting for a 36 per cent share in overall leasing. Bengaluru led the GCC leasing during the quarter, with a 27 per cent share, followed by Chennai at 21 per cent, Pune at 20 per cent and Hyderabad at 15 per cent. Delhi-NCR and Mumbai had a 12 per cent and 4 per cent shares in leasing, respectively.
Office leasing in green-certified assets accounted for 77 per cent of total office leasing during the quarter (15.6 million sq ft), while 93 per cent of new supply (16 million sq ft) in April-June 2025 was green-certified. This underscores the increasing commitment of both occupiers and developers to environmental, social and governance (ESG) principles and sustainability initiatives. Bengaluru led with a 29 per cent share in leasing in green-certified assets, followed by Chennai with 16 per cent and Hyderabad, 14 per cent share in overall leasing.