India’s office market has witnessed a significant surge in leasing activity, with 17.8 million square feet of space leased across the top seven cities in Q2 2025. This represents an 11% year-over-year growth, driven by increasing demand for high-quality office spaces from various sectors.
According to a recent report by Knight Frank India, the top seven cities in India’s office market – Bengaluru, Delhi-NCR, Mumbai, Pune, Chennai, Hyderabad, and Kolkata – have seen a significant increase in leasing activity. The report highlights that the growth is driven by sectors such as IT/ITeS, BFSI, and engineering, which are expanding their operations in India.
Key Trends Driving Growth
Several key trends are driving the growth in India’s office market. These include:
- Increasing demand for high-quality office spaces: Companies are looking for modern, well-designed office spaces that offer flexibility, collaboration, and employee well-being.
- Growing demand from IT/ITeS and BFSI sectors: These sectors are driving growth in India’s office market, with companies expanding their operations and looking for high-quality office spaces.
- Rise of flexible workspaces:
- Flexible workspaces are becoming increasingly popular in India, with companies looking for flexible and cost-effective solutions.
- Sustainability and ESG considerations: Companies are increasingly focusing on sustainability and environmental, social, and governance (ESG) considerations, driving demand for green and sustainable office spaces.
City-Wise Performance
The report highlights that Bengaluru continues to lead the pack, with 4.5 million square feet of office space leased in Q2 2025. Delhi-NCR and Mumbai followed closely, with 3.8 million and 3.2 million square feet of office space leased, respectively.
Outlook
The outlook for India’s office market remains positive, with strong demand expected to continue in the coming quarters. The government’s focus on infrastructure development and initiatives such as Make in India and Digital India are expected to drive growth in the office market.
Conclusion
India’s office market has seen a significant surge in leasing activity in Q2 2025, driven by increasing demand for high-quality office spaces from various sectors. With strong demand expected to continue, the outlook for India’s office market remains positive. As the country’s economy continues to grow, it’s likely that the office market will play an increasingly important role in driving growth and development.
