India’s office space market reached an all-time high in the March 2025 quarter, with gross leasing activity rising 74% year over year to 282 million square feet across eight major cities, according to real estate consultancy Knight Frank India, as reported by The Economic Times.
The data, published Thursday in the firm’s “India Real Estate: Office and Residential Report” for January–March 2025, highlights growing momentum fueled by robust demand from global firms, especially those establishing Global Capability Centres (GCCs).
“Q1 2025 was an exceptional period for the Indian office space market,” said Shishir Baijal, chairman and managing director of Knight Frank India. “With demand for GCCs consistently breaching new highs, the global perception of India as a long-term investment destination continues to strengthen.”
GCCs emerged as the biggest demand drivers, accounting for 124 million square feet of the total leasing activity, up from 50 million square feet in the same quarter last year.
Among the eight cities tracked, Bengaluru saw the most significant growth, with gross leasing jumping more than threefold to 127 million square feet, up from 35 million square feet a year ago. Of this, 58% — or 74 million square feet — were pre-commitments, indicating strong occupier confidence.
Hyderabad recorded a 31% increase in leasing, touching 40 million square feet compared to 30 million square feet in the same quarter last year.
Pune posted a 91% rise, with gross leasing reaching 37 million square feet, up from 19 million square feet, while Mumbai saw a 24% increase to 35 million square feet from 28 million square feet.
Chennai also witnessed substantial growth, with leasing activity up 56% to 18 million square feet, from 12 million square feet a year earlier.
In contrast, some cities experienced notable declines. Delhi-NCR saw leasing fall 33% to 21 million square feet, down from 31 million square feet in the year-ago quarter.
Ahmedabad posted the steepest drop at 54%, with gross leasing slipping to 2.2 million square feet from 5 million square feet. Kolkata also declined 16%, from 2 million square feet to 1.6 million square feet.
Ramesh Nair, CEO of Mindspace Business Parks REIT, said the record-breaking momentum is being driven not only by GCCs but also by sectors such as BFSI (banking, financial services, and insurance), technology, and the rapidly growing data center industry.
He added that occupier preferences are shifting toward Grade A office spaces offering more than just infrastructure.
“Tenants are increasingly valuing premium experiences, including integrated retail, food and beverage, hospitality, and wellness amenities,” Nair said. “As businesses scale and adapt to new workstyles, the demand for amenity-rich, well-connected ecosystems continues to grow.”
According to Knight Frank, the overall leasing surge reflects India’s rising stature as a global hub for enterprise, technology, and innovation.