Bengaluru leads India's office space leasing surge representing 27% of the total demand

Bengaluru, a key player in India's office space leasing market, has continued to dominate in 2025, contributing significantly to the country's office space uptake. The city’s leasing activity, particularly in the Grade A segment, remains robust despite global challenges. In the first three quarters of 2025, Bengaluru accounted for 14 million square feet of leasing, which represents 27% of the total demand across India. The city remains the leader in office space transactions, with a high demand for both conventional and flexible office setups.

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Other major cities like Pune, Mumbai, and Chennai have also seen a surge in leasing activity, contributing to over half of the national demand for Grade A office spaces in Q3 alone. Pune, in particular, saw a sharp increase in new supply, with 4.6 million square feet completed in Q3 2025, nearly quadrupling its previous figures. New office space supply in India reached 41.4 million square feet in the first nine months of the year, with Bengaluru and Pune jointly contributing over half of this total.

Rise in leasing activity driven by Global Capability Centres

The rise in leasing activity has been primarily driven by Global Capability Centres (GCCs), which have already leased around 20 million square feet, making up 40% of the overall office space demand. This trend underscores India’s growing importance in global business, with Tier II cities emerging as strong contenders for office space leasing alongside established hubs like Bengaluru and Hyderabad.