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India’s office leasing grows 10% in 2025 despite IT layoffs
Bengaluru added approximately 13.5 million sq. ft. of new office space in 2025
The IT/ITeS sector continued to dominate office space demand. (Image: Unsplash)
Despite headwinds such as IT sector layoffs and ongoing tariff-related uncertainty, net office leasing across India’s top seven cities rose 10% year-on-year in 2025, signalling sustained demand for commercial real estate.
Net leasing increased from about 49.95 million sq. ft. in 2024 to nearly 55.16 million sq. ft. in 2025. While Bengaluru, the country’s largest IT/ITeS hub, saw leasing decline 5%—from around 14.87 million sq. ft. in 2024 to about 14.15 million sq. ft. in 2025—the city still recorded the highest new office supply during the year.
Bengaluru added approximately 13.5 million sq. ft. of new office space in 2025, up from 12.5 million sq. ft. a year earlier, marking an 8% year-on-year increase.
The IT/ITeS sector continued to dominate office space demand, accounting for 27% of total leasing in 2025, followed by coworking spaces at 23% and BFSI at 18%, underscoring the diversification of occupier demand beyond traditional tech tenants.
Across the top seven cities, new office completions rose 8% year-on-year, increasing from about 48.11 million sq. ft. in 2024 to nearly 51.83 million sq. ft. in 2025. Bengaluru once again led supply additions, outpacing all other markets.
However, Mumbai Metropolitan Region (MMR) and Hyderabad were the only major markets to record a contraction in new supply. MMR added around 6.05 million sq. ft. in 2025, down 35% from 9.27 million sq. ft. in 2024, while Hyderabad saw a 39% decline, with new supply falling from 12.88 million sq. ft. to about 9 million sq. ft..
In contrast, Pune recorded a sharp 103% year-on-year jump in new office completions, rising from 5.23 million sq. ft. in 2024 to over 10.60 million sq. ft. in 2025. Chennai also saw strong growth, with new supply increasing 72% to 3.90 million sq. ft., while NCR posted a 46% rise, adding 8.65 million sq. ft. during the year.
On the pricing front, average monthly office rentals rose 6%, from Rs 87 per sq. ft. in 2024 to Rs 92 per sq. ft. in 2025. Bengaluru recorded the steepest increase at 9%, with average rents climbing from Rs 94 per sq. ft. to Rs 102 per sq. ft. Pune and NCR each saw 6% increases, while MMR and Chennai posted 5% growth. Hyderabad and Kolkata recorded more modest rises of 4% and 3%, respectively.
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