Square Feet, Big Feat: India’s 9-to-5 Gets a Mega Makeover, 39 Million Sq. Ft. Leased in Just 6 Months!

India’s commercial real estate sector has set a new benchmark, with office leasing across the top 9 cities reaching a record 39 million sq. ft. in the first half of 2025. This marks a 3% year-on-year growth and reflects robust demand from both global and domestic corporations. Bengaluru, Mumbai, and Delhi-NCR led the surge, accounting for 60% of total absorption, while new supply also hit an all-time high at 27.7 million sq. ft. The technology sector remained the primary driver, closely followed by BFSI and flexible space operators, collectively making up 64% of all leasing activity. Global Capability Centres (GCCs) played a pivotal role, leasing 15.2 million sq. ft.—about 40% of the total—with Bengaluru alone contributing 5.2 million sq. ft.

 

Key Highlights:

 

Bengaluru led with 10.5 mn. sq. ft. leased, followed by Mumbai (6.6 mn. sq. ft.) and Delhi-NCR (6.1 mn. sq. ft.).

 

Technology firms drove 25% of leasing, BFSI 23%, and flexible space operators 17%.

 

New supply surged 19% YoY to 27.7 mn. sq. ft. in H1 2025.

 

Global corporates accounted for 53% of absorption, with US firms leading in BFSI and engineering sectors.

 

Quarterly leasing (Apr–Jun 2025) rose 8% YoY to 20.3 mn. sq. ft., with significant supply additions in Pune, Bengaluru, and Hyderabad.

 

Outlook:

The momentum is expected to persist into the second half of 2025, supported by a strong supply pipeline and continued expansion by technology and global firms. This historic performance underscores India’s growing stature as a global business hub and signals sustained confidence in its commercial real estate market.

 

Source: Economic Times, CBRE, Business Standard