India’s Office Real Estate Market Booms with Rising Rentals and Record Leasing
India's office real estate sector is experiencing strong growth, with average rentals rising 6% year-on-year across major cities and vacancy rates declining. Bengaluru leads in rental growth and leasing activity. Net office absorption surged to a record 42 million sq. ft., surpassing pre-pandemic levels, driven by demand from Global Capability Centres, IT, coworking, and BFSI sectors.
According to ANAROCK Research, India's office real estate market is showing remarkable resilience and growth momentum despite global uncertainties. Across the top seven cities, average office rentals increased by 6% from approximately ₹85 per sq. ft. in the first nine months of 2024 to ₹90 per sq. ft. in the same period of 2025, with Bengaluru at the forefront boasting a 9% rise. Concurrently, vacancy rates fell from 16.7% to 16.2%, reflecting robust leasing activity. The net absorption of office space rose sharply by 34% year-on-year to a record 42 million sq. ft., exceeding 2019 pre-pandemic figures by 30%. Pune displayed exceptional growth in leasing, with net absorption nearly doubling. Bengaluru, Delhi-NCR, and Mumbai Metropolitan Region (MMR) were leaders in absolute leasing volumes. The demand drivers include Global Capability Centres, IT, coworking spaces, and the BFSI sectors. This uptrend is supported by other reports indicating sustained office supply growth, with new completions in Pune, Bengaluru, and Delhi-NCR, and technology-driven workspace evolution. The market optimism is underpinned by India's economic growth, skilled talent pool, and occupiers’ preference for high-quality office spaces.[4][1][2][3]
