India’s Office Market Hits Record High in 2025 as GCCs Drive Demand
India’s commercial real estate boom in 2025 was led by GCCs, with cities like Bengaluru, Hyderabad, and NCR witnessing record leasing and rising rentals.
India’s office market has concluded 2025 with a record-breaking performance, driven by strong demand from Global Capability Centres (GCCs). According to Knight Frank India’s flagship report, annual gross leasing surged to 86.4 million square feet (mn sq ft) in 2025, a 20% year-on-year increase and surpassing the previous peak achieved in 2024.
GCCs accounted for 38% of total annual transactions, with 31.8 mn sq ft of office space leased in 2025. This trend underscores India’s growing importance as a hub for research and development and other related businesses. Bengaluru, the largest office market in India, grossed 28 mn sq ft, a historic best for the city. Other major cities, including Hyderabad, National Capital Region (NCR), Pune, and Chennai, also saw significant growth.
Despite the strong demand, new office completions rose by a modest 9% year-on-year to reach 54.8 mn sq ft in 2025. This supply crunch has led to increased rents, with NCR and Hyderabad seeing the highest appreciation at 10% each. Bengaluru and Mumbai also recorded rental increases of 6% each.
The strong performance of India’s office market in 2025 is expected to continue, driven by the growing presence of GCCs and other occupiers. According to Shishir Baijal, International Partner, Chairman and MD, Knight Frank India, the current cycle marks a structural shift in how global and domestic enterprises view India as a long-term business destination.
The strong demand from GCCs and other occupiers is expected to continue driving India’s office market in the coming years. With its skilled workforce and favourable business environment, India is well-positioned to benefit from the growing trend of GCCs and other forms of outsourcing.
Key Takeaways
– India’s office market hit a record high in 2025, with annual gross leasing surging to 86.4 mn sq ft.
– GCCs accounted for 38% of total annual transactions, driving demand for office space.
– Bengaluru, Hyderabad, NCR, Pune, and Chennai saw significant growth in office leasing.
– Supply crunch led to increased rents, with NCR and Hyderabad seeing the highest appreciation at 10% each.
