Hero Drone Saves Young Boy Lost In Cornfield
The Thrilling Tale of a Drone’s Heroic Rescue in an Indiana Cornfield
On August 10, 2025, over …
25. July 2025
Bengaluru Leads Indias Office Market With Record-Breaking Leased Space Growth
Bengaluru Continues to Dominate India’s Office Market with Unprecedented Growth in Leased Space
The first half of 2025 saw Bengaluru take the top spot in India’s office market, boasting an impressive gross absorption of 10.4 million square feet, a 1% rise from the same period last year, according to Savills. The city’s dominance in the market is no surprise, given its long-standing reputation as a global tech and back-office hub.
Sustained demand from key sectors such as IT-BPM, flexible workspace, and BFSI drove Bengaluru’s office leasing growth. Occupiers from these sectors remained the primary contributors to the city’s remarkable performance, supported by resilient economic fundamentals despite global uncertainties. “The first half of the year marked an upward trajectory for India’s commercial office market, with gross leasing reaching 38 million sq ft, mainly led by sustained demand from global capability centers (GCCs),” said Naveen Nandwani, managing director of commercial advisory and transactions at Savills India.
Nationwide, office leasing across six major cities rose 7% year-on-year to 38.2 million sq ft, while new supply grew by 44% to 25.3 million sq ft. This significant increase in new supply is a testament to the growing confidence of developers in the market. India’s total Grade A office stock reached an impressive 822.9 million sq ft by June, with vacancy levels dipping to 14.7%, down from 15.9% last year.
This decrease in vacancy rates indicates a healthy demand for office spaces, further solidifying Bengaluru’s position as the country’s leading office space provider. Full-year leasing is expected to cross 70 million sq ft as occupier confidence grows. With this projection, Bengaluru is set to continue its dominance in the market, solidifying its reputation as a global tech and back-office hub.
Bengaluru’s new office supply more than doubled year-on-year, reaching an impressive 8.6 million sq ft, driven by strong developer confidence. The city’s Grade A stock rose to 244.9 million sq ft, with projections of 253.9 million sq ft by year-end. This significant increase in supply is expected to cater to the growing demand for office spaces in the city.
GCCs were the top demand drivers, accounting for nearly 67% of Bengaluru’s leasing activity. IT-BPM, engineering and manufacturing firms made up around 60% of all leased spaces. Large deals (over 1 lakh sq ft) were prominent, reflecting corporate needs for large and high-quality offices. The dominance of GCCs in the market is a testament to Bengaluru’s status as a global tech and back-office hub.
In comparison, Delhi-NCR recorded 6.8 million sq ft of leased spaces, led by IT-BPM and BFSI sectors. GCCs accounted for over 25% of the region’s leasing. Mumbai followed with 6.7 million sq ft, dominated by tech and financial services firms, which together accounted for 58% of deals.
Meanwhile, Chennai saw a 14% YoY increase with 5.5 million sq ft of leasing, led by large deals from IT-BPM, BFSI and flexible workspace sectors. Hyderabad, however, experienced a 20% drop with 4.8 million sq ft, amid slow decision-making and changing occupier strategies, although GCCs still contributed 50% of the leased spaces.
Pune had the highest half-yearly supply in two decades, adding 7 million sq ft, a 2.4 times increase from last year. Gross absorption stood at 4.1 million sq ft, with BFSI-led GCCs accounting for 61% of total GCC leasing in the city. The growing focus on future-ready, tech-enabled and sustainable workspaces is driving demand across cities.
The continued shift toward future-ready, tech-enabled and sustainable workspaces is reinforcing India’s position as a strategic node in global office portfolios, according to Nandwani. This trend has led to an increase in demand for green buildings and smart offices. With this growth, Bengaluru is poised to continue its dominance in the market.
The growing focus on sustainability and technology has created an ideal environment for Bengaluru to continue its dominance. As the market continues to evolve, it’s essential to understand the factors driving growth in India’s office market. Sustained demand from key sectors, coupled with the growing focus on sustainability and technology, has created an ideal environment for Bengaluru to continue its dominance.
Bengaluru’s remarkable performance is a testament to its reputation as a global tech and back-office hub. With strong developer confidence, growing demand for sustainable and futuristic workspaces, and dominant position in the market, it’s clear that Bengaluru will continue to lead India’s office market for years to come.