Bengaluru, the National Capital Region, and Mumbai have surged to the forefront of office leasing markets in the Asia Pacific, driving India’s commercial real estate towards record growth in 2025. Leasing activity in these three cities has reached unprecedented levels, fuelled by robust demand from technology, global capability centres, and financial services firms.
According to new data from leading property consultancies, Bengaluru led all cities with nearly 9.95 million square feet of net absorption during the first nine months of the year. Delhi-NCR followed with 8.2 million square feet, while the Mumbai Metropolitan Region clocked 6.6 million square feet, making them the three most active office leasing markets in the region. This surge contributed to overall office space absorption across India’s seven largest cities jumping 34 per cent year-on-year to over 42 million square feet, setting a new national record.
Rental rates have grown in tandem, with prime office rents in Bengaluru, NCR, and Mumbai rising by 4.3 per cent annually in the third quarter, reflecting the ongoing shift towards high-quality, sustainable workspaces.
Global capability centres and technology firms remained the biggest drivers of demand, accounting for over 40 per cent of gross leasing. The IT and ITeS sector led with a 27 per cent share of total leasing, closely followed by coworking spaces and the banking and financial sector. Bengaluru’s Central Business District and key corridors such as the Outer Ring Road and Whitefield fuelled the city’s dominant performance, while Mumbai’s Bandra-Kurla Complex and Delhi’s Connaught Place also saw strong gains.
This record activity, paired with a slight drop in vacancy to 16.2 per cent despite new supply, highlights India’s growing global stature as a business destination. Experts predict that, with continued expansion from global corporates and steady demand for premium workspace, the Indian office market will remain a vital pillar in the region’s real estate sector for the foreseeable future.
