Business

India’s Office Leasing Hits Record High In Q1 2025; Driven By Domestic Demand

India’s office space leasing surged to its highest level ever in the first quarter of 2025, reflecting strong domestic and global demand, especially from GCCs and flex space operators.

Office Leasing Reaches 19.46 Million Sq Ft

India recorded an all-time high office leasing volume of 19.46 million square feet in the January-March quarter of 2025, according to a report released on Wednesday by global real estate firm JLL.

Domestic companies contributed significantly, leasing a record 8.82 million sq ft during the quarter.

Global Occupiers Lead; Domestic Players Make Historic Gains

While global occupiers, particularly global capability centers (GCCs), continued to dominate leasing activity, domestic firms demonstrated unprecedented growth.

“The Indian office market has demonstrated remarkable resilience and growth in Q1 2025, underpinned by the strongest-ever performance by domestic occupiers,” said Samantak Das, Chief Economist for India at JLL.

Flex space operators and third-party tech firms drove much of the domestic demand, especially in cities like Bengaluru and Pune, where flex operators accounted for 70% and 61.8% of the domestic leasing, respectively.

In Mumbai, the BFSI sector led leasing by domestic companies, while in Hyderabad, tech firms took the lead.

Bengaluru And Delhi-NCR Lead City-Wise Leasing Activity

Bengaluru retained its top spot in office leasing for the fourth consecutive quarter, accounting for 21.9% of total leasing.

Delhi-NCR followed closely with 21.6%. Year-on-year, gross leasing rose 28.4% across India’s top seven cities, with all cities recording growth except Chennai.

Domestic leasing saw significant year-on-year growth in Bengaluru, Hyderabad, Mumbai, and Pune, reflecting expanding business activity in these urban hubs.

Net Absorption Jumps 54% YoY

Driven by strong demand across sectors, net office space absorption climbed to 12.78 million sq ft in Q1 2025, marking a 54% year-on-year increase.

“A strong performance by BFSI, along with flex and tech firms, propelled net absorption and emphasized the expansion-led demand in the Indian office market,” Das noted.

Vacancy Rates Drop To Four-Year Low

India’s commercial real estate market tightened significantly, with vacancy rates falling to a four-year low of 15.7%.

Prime office locations even saw single-digit vacancy levels, indicating strong demand and limited supply in core markets.

“The market’s robustness is further evidenced by tight vacancy levels and steady demand, signaling a bullish outlook for India’s commercial real estate sector,” said Rahul Arora, Senior Managing Director at JLL.

Also Read: Apple Poised For Record Q1 iPhone Sales In India; Surpasses 3 Million Units

Bharat Express English

Recent Posts

Gautam Adani Hails Puri Lifeguards As Unsung Heroes During Rath Yatra Visit

Gautam Adani, Chairman of the Adani Group, visited Puri in Odisha during the annual Rath…

2 hours ago

Acharya Pramod Krishnam Slams Congress Over ‘Internal Emergency’ Allegation

Acharya Pramod Krishnam, stirred political debate by claiming an 'internal emergency' still exists within the…

2 hours ago

MRM Meeting: Pledge for Global Peace, Green India, De-addiction & Democratic Integrity

Taking a crucial step toward positive transformation, social reform, and global peace, the Muslim Rashtriya…

3 hours ago

India To Host 2029 World Police & Fire Games; Amit Shah Hails Global Recognition

India has been chosen to host the prestigious 2029 World Police and Fire Games in…

3 hours ago

Seeing The Lord Among Devotees Is The Pinnacle Of Humility: Gautam Adani At Rath Yatra

Gautam Adani, along with his wife and Karan, participated in the Rath Yatra in Puri,…

5 hours ago

PM Modi Interacts With Group Captain Shubhanshu Shukla Aboard The ISS

PM Narendra Modi interacted with Group Captain Shubhanshu Shukla, the first Indian to reach the…

6 hours ago