India’s office real estate market is seeing strong momentum, with Global Capability Centres (GCCs) emerging as a key growth driver across major cities.
According to a report by a real estate consulting firm, GCCs are expected to account for 35 to 40 percent of total office space demand in 2025. These centres also dominated large office transactions, contributing over 55 percent of deals above 1 lakh sq. ft. during the first 9 months of CY25.
Office leasing activity remains robust, supported by resilient demand fundamentals. Gross office leasing is projected to cross 80 million sq. ft. in 2025. Between January and September, around 60 million sq. ft. of gross leasing was recorded, marking the highest first-nine-month total ever.
The report highlighted that strong fundamentals are likely to sustain leasing momentum into 2026. Growth is expected to be led by portfolio expansion, workplace reconfiguration, and a growing shift towards premium and future-ready office assets.
Sustainability continues to gain importance among occupiers. Most tenants have already defined their ESG goals. Around 84 percent of the new office supply delivered during the period was green-certified, while 77 percent of total leasing activity took place in such developments.
Occupiers are also investing more in collaborative and innovation-focused workspaces. This trend is boosting demand for high-quality, tech-enabled and experience-driven office environments.
From a sector perspective, office leasing remained broad-based. Technology companies led demand, followed by flex space operators, BFSI firms, and players from engineering and manufacturing sectors.
Industrial and logistics leasing also recorded steady growth, driven by 3PL players and e-commerce companies. Delhi NCR, Bengaluru and Hyderabad together accounted for nearly 60 percent of total industrial and logistics space take-up.
Large transactions continued to shape the market. Deals above 1 lakh sq. ft. made up 38 percent of total space absorption in 9M 2025, compared to 27 percent during the same period last year.
In retail, space take-up reached 4.6 million sq. ft., with fashion and apparel brands driving nearly half of the demand. Residential sales crossed 2.1 lakh units in the first 9 months of 2025.
Equity investments in real estate rose 14 percent year on year to 10.2 billion dollars in 9M 2025. Full-year investments are expected to reach between 12 and 14 billion dollars.
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