India’s office leasing market witnessed robust momentum in Q1 2025, with gross absorption touching 18 million sq. ft., a 5% year-on-year (YoY) increase, according to CBRE’s latest report, India Office Figures Q1 2025.
Driving this growth was the banking, financial services, and insurance ( BFSI) sector, which recorded an over 100% YoY surge in leasing activity, accounting for 26% of total absorption during the quarter.
The resurgence of BFSI demand was largely propelled by Global Capability Centres (GCCs), which made up nearly 57% of the sector’s total leasing. American and domestic banks dominated BFSI-driven office take-up, contributing 48% and 31%, respectively. The majority of this activity was concentrated in Mumbai and Delhi-NCR, which together accounted for 60% of BFSI leasing in the quarter.
CBRE’s report highlights that Bengaluru, Delhi-NCR, and Mumbai collectively represented 64% of all office leasing activity in Q1 2025. Bengaluru led the pack with 4.8 million sq. ft. leased, driven by strong demand from American technology firms, followed by Delhi-NCR with 3.8 million sq. ft. and Mumbai with 2.9 million sq. ft.
Other active sectors included technology 24% share, flexible space operators 12%, engineering and manufacturing 11%, and research, consulting and analytics 8%. Life sciences firms contributed 5% of total leasing.
“India’s office sector is on a solid trajectory for sustained leasing growth, driven by strategic expansions from both domestic and global occupiers. Established hubs like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai continue to lead, while cities like Chennai and Pune are gaining traction due to a strong talent base and a well-positioned supply pipeline. As businesses seek quality workspaces, the demand for sustainable offices is rising, with occupiers prioritizing employee experience and long-term growth. A key factor shaping this momentum is the growing presence of Global Capability Centers (GCCs). As multinational firms consolidate, their expansion, alongside the continued rise of BFSI, technology,and emerging sectors, reinforces India's position as a global business hub. With strategic investments and a maturing office landscape, the sector is poised for long-term resilience and evolution,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said,
GCCs themselves were responsible for 8 million sq. ft. of leasing during the quarter — a 66% YoY increase — accounting for 45% of total office leasing. Bengaluru dominated GCC activity with a 40% share, followed by Delhi-NCR (24%), Chennai (14%), and Hyderabad (10%).
“India is rapidly evolving as a global hub for GCCs, with multinational firms leveraging its skilled workforce to drive innovation and digital transformation. In 2025, GCCs are expected to account for nearly 35-40% of total office space absorption, with expansions not just in metro cities but also in emerging business hubs, supported by favorable state policies.
While U.S. firms remain dominant, European and Asian corporations are increasingly establishing GCCs in India, drawn by its cost efficiency and mature operational ecosystem. The technology and BFSI sectors will continue to drive this demand, with high-value capabilities emerging in aerospace, semiconductors, and life sciences. With companies viewing India as a strategic growth destination, the GCC sector is set to be a key pillar of the country’s office market expansion,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India,
Leasing of green-certified office spaces is also gaining prominence. In Q1 2025, 81% of leasing 14.7 million sq. ft. was in green-certified buildings, while 88% of new supply 8.6 million sq. ft. was similarly compliant, reflecting growing focus on sustainability and ESG goals. Bengaluru accounted for the highest green-certified supply at 38%followed by Pune at 33% and Delhi-NCR (29%).
City-level highlights underscore the diverse demand patterns. While Mumbai’s absorption was led by BFSI 53%, Hyderabad saw strong leasing from life sciences and tech firms. Chennai and Pune were driven by domestic technology and BFSI demand, while Kolkata, Kochi, and Ahmedabad also saw modest traction from flexible space, consulting, and tech sectors.
Looking ahead, the office sector is expected to maintain its growth momentum in 2025, fueled by technology hiring in AI, ML, and cloud computing; the digital transformation of BFSI and E&M sectors; and increasing activity in life sciences, semiconductors, and aerospace.
CBRE expects GCCs to account for 35-40% of total office leasing this year, with India continuing to attract strategic investments from multinationals seeking cost efficiency, skilled talent, and fast go-to-market timelines.
Developers are also prioritising amenitised, ESG-compliant office spaces, especially in integrated tech parks. A steady supply of investment-grade assets, combined with demand for quality workplaces, is expected to compress vacancies and boost rentals across key micro-markets.
Driving this growth was the banking, financial services, and insurance ( BFSI) sector, which recorded an over 100% YoY surge in leasing activity, accounting for 26% of total absorption during the quarter.
The resurgence of BFSI demand was largely propelled by Global Capability Centres (GCCs), which made up nearly 57% of the sector’s total leasing. American and domestic banks dominated BFSI-driven office take-up, contributing 48% and 31%, respectively. The majority of this activity was concentrated in Mumbai and Delhi-NCR, which together accounted for 60% of BFSI leasing in the quarter.
CBRE’s report highlights that Bengaluru, Delhi-NCR, and Mumbai collectively represented 64% of all office leasing activity in Q1 2025. Bengaluru led the pack with 4.8 million sq. ft. leased, driven by strong demand from American technology firms, followed by Delhi-NCR with 3.8 million sq. ft. and Mumbai with 2.9 million sq. ft.
Other active sectors included technology 24% share, flexible space operators 12%, engineering and manufacturing 11%, and research, consulting and analytics 8%. Life sciences firms contributed 5% of total leasing.
“India’s office sector is on a solid trajectory for sustained leasing growth, driven by strategic expansions from both domestic and global occupiers. Established hubs like Bengaluru, Hyderabad, Delhi-NCR, and Mumbai continue to lead, while cities like Chennai and Pune are gaining traction due to a strong talent base and a well-positioned supply pipeline. As businesses seek quality workspaces, the demand for sustainable offices is rising, with occupiers prioritizing employee experience and long-term growth. A key factor shaping this momentum is the growing presence of Global Capability Centers (GCCs). As multinational firms consolidate, their expansion, alongside the continued rise of BFSI, technology,and emerging sectors, reinforces India's position as a global business hub. With strategic investments and a maturing office landscape, the sector is poised for long-term resilience and evolution,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said,
GCCs themselves were responsible for 8 million sq. ft. of leasing during the quarter — a 66% YoY increase — accounting for 45% of total office leasing. Bengaluru dominated GCC activity with a 40% share, followed by Delhi-NCR (24%), Chennai (14%), and Hyderabad (10%).
“India is rapidly evolving as a global hub for GCCs, with multinational firms leveraging its skilled workforce to drive innovation and digital transformation. In 2025, GCCs are expected to account for nearly 35-40% of total office space absorption, with expansions not just in metro cities but also in emerging business hubs, supported by favorable state policies.
While U.S. firms remain dominant, European and Asian corporations are increasingly establishing GCCs in India, drawn by its cost efficiency and mature operational ecosystem. The technology and BFSI sectors will continue to drive this demand, with high-value capabilities emerging in aerospace, semiconductors, and life sciences. With companies viewing India as a strategic growth destination, the GCC sector is set to be a key pillar of the country’s office market expansion,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India,
Leasing of green-certified office spaces is also gaining prominence. In Q1 2025, 81% of leasing 14.7 million sq. ft. was in green-certified buildings, while 88% of new supply 8.6 million sq. ft. was similarly compliant, reflecting growing focus on sustainability and ESG goals. Bengaluru accounted for the highest green-certified supply at 38%followed by Pune at 33% and Delhi-NCR (29%).
City-level highlights underscore the diverse demand patterns. While Mumbai’s absorption was led by BFSI 53%, Hyderabad saw strong leasing from life sciences and tech firms. Chennai and Pune were driven by domestic technology and BFSI demand, while Kolkata, Kochi, and Ahmedabad also saw modest traction from flexible space, consulting, and tech sectors.
Looking ahead, the office sector is expected to maintain its growth momentum in 2025, fueled by technology hiring in AI, ML, and cloud computing; the digital transformation of BFSI and E&M sectors; and increasing activity in life sciences, semiconductors, and aerospace.
CBRE expects GCCs to account for 35-40% of total office leasing this year, with India continuing to attract strategic investments from multinationals seeking cost efficiency, skilled talent, and fast go-to-market timelines.
Developers are also prioritising amenitised, ESG-compliant office spaces, especially in integrated tech parks. A steady supply of investment-grade assets, combined with demand for quality workplaces, is expected to compress vacancies and boost rentals across key micro-markets.
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