NEW DELHI, India — India’s office real estate market reached a record high in 2025, with annual gross leasing rising 20 percent year over year to 86.4 million square feet, according to a report released Friday by Knight Frank India.
The report said office leasing volumes were also 43 percent higher than the pre-pandemic peak recorded in 2019, underlining sustained occupier demand and reinforcing India’s position as one of the world’s leading commercial real estate markets.
On the residential side, housing sales across eight major cities remained broadly stable at 348,204 units in 2025, down a marginal 1 percent from the previous year. New residential launches totaled 362,184 units, easing 3 percent year over year. Mumbai led residential sales, accounting for 29 percent of total transactions, or 97,188 units.
Knight Frank said the strong performance across office markets reflects the maturity of India’s commercial real estate ecosystem, supported by deep talent pools, resilient demand drivers, and disciplined supply additions.
“With annual leasing volumes rising over 20 percent year on year, the current cycle marks not just a numerical high but a structural shift in how global and domestic enterprises view India as a long-term business destination,” said Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India.
Bengaluru emerged as the largest office market in the country, recording a historic 28.7 million square feet of leasing activity during the year. Delhi-NCR retained its position as India’s second-largest office market in terms of total office stock.
The report noted that the residential sector is entering a phase of measured normalization after three consecutive years of elevated activity. This phase continues to be supported by end-user demand, premiumization trends, and firm price growth across major markets.
Global Capability Centers accounted for 38 percent of total office space absorption in 2025. Third-party IT services firms also saw a strong rebound, leasing 15.3 million square feet, or 20 percent of the total transacted area, representing a 94 percent increase from the previous year.
Flexible workspace operators recorded their highest-ever leasing activity at 18.6 million square feet, marking a 19 percent year-on-year increase. Office rents rose between 1 percent and 16 percent year over year across markets in the second half of 2025, led by Kolkata with a 16 percent increase, while NCR and Hyderabad each posted 10 percent growth. (Source: IANS)
