Office demand across India’s top eight major cities is projected to hit a record high in 2025, with gross leasing anticipated to exceed an impressive 90 million square feet. This optimistic forecast comes from Cushman & Wakefield, a leading global real estate consultant, highlighting a robust growth trajectory for the country’s commercial real estate sector.
The projected surge in office demand is primarily driven by strong activity within the technology, Banking, Financial Services, and Insurance (BFSI), and engineering sectors. Global Capability Centers (GCCs) are identified as a particularly significant contributor to this burgeoning demand.
Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield, said, “The growth is being fuelled by a convergence of trends, expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms.” However, he pointed out that office supplies are lagging in core locations, creating a landlord’s market.
During the first half of 2025 (January-June), overall gross leasing across these top cities stood at 41.7 million square feet, marking a notable increase compared to the previous year. While the demand showed varied patterns across different urban centers, Pune, Chennai, and Delhi-NCR experienced an uptick in office space absorption. Conversely, cities such as Mumbai, Bengaluru, Hyderabad, Ahmedabad, and Kolkata observed a decline in leasing activity during the same period.
The Indian office market is described as being firmly in a growth phase following the disruptions caused by the COVID-19 pandemic. Continued momentum is expected to be fueled by sustained occupier confidence, easing inflationary pressures, and anticipated rate cuts, all contributing to a favorable environment for commercial real estate expansion.
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