India's top eight office markets saw an impressive 74% increase in gross office space leasing in the March quarter to a record high of 282 lakh square feet.
This increase was mainly driven by increasing demand from international companies setting up Global Capability Centres (GCCs), said a report by real estate consultancy Knight Frank.
On Thursday, Knight Frank India unveiled its 'India Real Estate: Office and Residential Report' for the January-March 2025 period.
"Q1 2025 was an extraordinary phase for India's office space sector. The demand for GCCs has consistently surpassed previous records, reinforcing India’s reputation as a long-term investment hub," stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.
Of the top eight cities, Bengaluru saw a stunning growth in gross office leasing, more than tripling to 127 lakh square feet in January-March 2025 from 35 lakh square feet in the same period last year. Interestingly, pre-commitments represented about 58% (74 lakh square feet) of this space.
In Hyderabad, office leasing market grew 31% to 40 lakh square feet from last year's 30 lakh square feet. Pune saw an even sharper growth of 91%, with office demand rising to 37 lakh square feet from 19 lakh square feet. Mumbai too saw a strong growth with leasing activity going up by 24% to 35 lakh square feet from 28 lakh square feet.
While Chennai saw a gross office leasing pick-up of 56% to 18 lakh square feet from 12 lakh square feet in the period quarter, Delhi-NCR witnessed a 33% drop in leasing to 21 lakh square feet from 31 lakh square feet.
Ahmedabad and Kolkata also witnessed decreases in office space demand. Leasing decreased by 54% to 2.2 lakh square feet from 5 lakh square feet in Ahmedabad, while Kolkata saw a 16% fall, with 1.6 lakh square feet of transactions as against 2 lakh square feet in the last year.
As per Knight Frank, GCCs were the leading drivers of office space deals with 124 lakh square feet of transactions in the previous quarter, a big spike from 50 lakh square feet in the quarter last year.
Commenting on the trend, Ramesh Nair, CEO, Mindspace REIT, which is a prominent office space developer, said, "India's office market is seeing record-level leasing momentum led by robust demand from GCCs, BFSI, technology companies, and the fast-emerging data center space."
He went on to note, "There is a clear tilt in occupier demand for Grade A office buildings that provide something more than infrastructure—occupants are increasingly willing to pay top dollar for higher-end experiences, such as retail, F&B, hospitality, and wellness facilities."
With the growth of business and the adoption of changing models of work, Nair emphasized that demand for well-located, amenity-filled business hubs continues to go up, reiterating India's global gateway status as a hub for business, technology, and innovation.
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