India Office Leasing Hits Record High

India's Grade A office leasing across its top seven cities reached a record 71.5 million sq ft in 2025, marking a 6% year-on-year growth. This surge was driven by strong occupier demand, expanding Global Capability Centers (GCCs), and a preference for high-quality assets. India — Bengaluru led the market with 22.1 million sq ft of leasing, while India — Delhi, India — Hyderabad, India — Chennai, and India — Mumbai also recorded significant activity. The fourth quarter of 2025 saw an all-time high quarterly leasing of 20.6 million sq ft. Technology firms were the largest demand drivers, accounting for 37% of total demand, with BFSI, engineering, manufacturing, and consulting firms also showing strong interest. Flex space uptake reached 13 million sq ft, about 18% of total leasing. New office supply increased by 5% to 56.5 million sq ft, concentrated in India — Bengaluru, India — Hyderabad, and India — Pune. As demand outpaced supply, overall vacancy levels declined, and average rentals firmed up by as much as 15% year-on-year across major cities. Experts from Colliers International, including Arpit Mehrotra and Vimal Nadar, anticipate continued robust leasing activity in 2026.