Office space demand in India driven by global capability centres (GCCs) rose 8% in the first nine months of 2025, reaching 50.9 million square feet, according to a new report. Bengaluru continued to lead leasing volumes in the third quarter, while Pune, Mumbai, and Chennai recorded strong growth, together contributing over half of the Grade A office space absorption. Each of these three cities saw demand rise by at least 40% year-on-year in Q3 2025.
Bengaluru retained the top spot with 14 million square feet of leasing activity, accounting for 27% of overall office demand across India.
“India’s office market continues to demonstrate resilience, crossing the 50 million square feet benchmark in the first nine months of the year, despite ongoing external volatilities and trade frictions,” said Arpit Mehrotra, Managing Director, Office Services, India, at a leading property consultancy. He added that the momentum is being fuelled by GCCs, which have already leased nearly 20 million square feet in 2025 across the top seven cities, contributing close to 40% of the total office demand.
Mehrotra also noted, “Going forward, although occupiers are likely to carefully evaluate evolving scenarios, global technology firms will continue to bolster Grade A space uptake and play a pivotal role in driving the office space demand close to 70 million square feet by the end of the year.”
New supply across the seven key markets remained strong in Q3 2025 with 16.6 million square feet of completions, a 15% annual increase. Pune led with a fourfold jump in completions to 4.6 million square feet, followed by Bengaluru and Delhi-NCR.
Conventional leasing during January to September 2025 stood at 41.7 million square feet, led by the technology and BFSI sectors. Flexible workspaces also gained traction, with Bengaluru, Pune, and Chennai together accounting for nearly two-thirds of the flex space demand in Q3 2025.
“Overall, the preference for agile workplace strategies and flex space adoption continues to be on the upswing across India and can potentially account for one-fifth of the overall demand in 2025,” said Vimal Nadar, National Director and Head of Research at the consultancy.
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