Bangalore continues to dominate Indian real estate, marks highest office leasing activity in Q4, 2025

CBRE South Asia report ‘CBRE India Office Figures Q4, 2025’, exhibits strong momentum of office leasing activities in the country. The report states that the high absorption in 2025 marks the third consecutive year for high demand, with 82.6 million sq. ft. The figure press for 1 percent Year-on-Year basis.

Q4, 2025 witness office leasing in India at 22.2 million sq. ft., across Bangalore, Delhi-NCR, and Mumbai. The interest from national and international investors amplified demand for office leasing in the country. The CBRE report tallies 61 percent total office absorption, including these cities.

The key demand drivers in the commercial real estate include Technology, flexible spaces, and BFSI corporates.

In a statement, real estate consultant CBRE said, “The office leasing activity hit a record high in 2025 for the third consecutive year, reaching 82.6 million square feet, registering a 1 per cent increase year-on-year (YoY).”

The cities tracked by CBRE are Delhi-NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad and Kochi. The steady demand for office leasing erupts from business expansion plans and portfolio expansion by global and nation-bound companies.

“India’s office market continues to demonstrate strong fundamentals despite a rapidly shifting global backdrop, marked by geopolitical uncertainties and challenges surrounding cross-border talent mobility,” said Anshuman Magazine, Chairman & CEO, India, South East Asia, Middle East & Africa at CBRE.

In 2026, India is likely to host more international brands via investment in GCCs (Global Capacity Centers). These institutions are likely to account for 35-40 of total office absorption this year.

“Despite existing uncertainties, global firms continue to view India as a strategic destination for their multi-functional hubs delivering innovation and enterprise leadership,” Magazine said.

In 2025, India's office leasing activity was majorly driven by technology giants and BFSI companies.

Ram Chandani, Managing Director, Leasing CBRE India, said the office leasing momentum could expand to tier-II cities as occupiers strategically expand their footprints beyond gateway hubs.

Commenting on the data, Mindscape REIT CEO & MD Ramesh Nair said, “2025 was a record year for India’s office market, driven by strong GCC demand, high leasing activity and improving occupancies. Also, the growing institutionalisation of the sector through REITs, and global capital has significantly improved quality, governance, and transparency.”

These factors have positioned Indian offices as one of the best asset classes for long-term, stable returns, he added.

Ashwin Shrivastava, Sr. VP, Leasing, knowledge Realty Trust, said, “The cities of Bengaluru, Hyderabad, and Chennai account for 50 per cent leasing in the country. The leasing strength is being shaped by technology and GCCs that are building long-term capability in India.”

South India offers a deep talent pool and specialised experts providing end-to-end support to help GCCs set up and scale with confidence, he added.

 (With inputs from Press Trust of India)