India's office market hits record highs in H1 2025, driven by strong GCC activity amid global headwinds

India's office market continues to show strong momentum despite significant global economic uncertainties and headwinds, with gross leasing numbers hitting a new high of 39.45 million sq. ft in H1 2025 (Jan-June 2025), up by 17.6% year-on-year (y-o-y), thanks to a stronger-than-expected Q2 (April-June). Global firms led the charge as they accounted for a strong 61.5% share in leasing volumes with India’s continued prominence as a global talent hub shining brightly, according to the latest report by JLL.

Q2 2025 hit 20 million sq. ft in leasing volumes, marking the strongest-ever second quarter performance for any year. The market also outperformed expectations, supported by the continued strength in domestic occupiers-led demand, which leased 7.7 million sq. ft in Q2 2025.

The year remains cumulatively on track for the strongest annual performance by domestic firms, says the report, adding the sustained demand reflects corporate India's confidence in long-term growth prospects and the country's strategic importance in multinational corporations' global footprints.

“India's office market is defying global economic headwinds with remarkable resilience, as evidenced by record-breaking gross leasing of 39.45 million sq. ft in H1 2025—a robust 17.6% y-o-y increase. This exceptional performance, driven by global occupiers who account for 61.5% of quarterly transactions, puts the market on a trajectory to surpass an unprecedented 80 million sq. ft annually. With the top seven cities consistently delivering approximately 21 million sq. ft per quarter over the past year, India has cemented its position as a mission-critical destination in multinational corporations' global strategies, reflecting deep-seated confidence in the country's long-term growth potential,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

Demand for high-quality offices remains strong across the major metros, with Bengaluru leading the pack for the fifth straight quarter. In fact, Bengaluru had its second-highest quarterly leasing volumes ever after Q4 2024. The city accounted for a significant 37.6% share of the quarterly leasing activity. Delhi NCR followed with a 20.8% share.

“Bengaluru's office market dominance reflects India's evolving economic landscape, with its record-breaking Q1 2025 performance capturing 37.6% of national leasing activity. The technology sector's resurgence to a three-year high market share of 30.3% in H1, combined with GCC activity breaking all previous Jan-June period records , signals India's commercial real estate dynamics to be in a very healthy state. Meanwhile, tech firms have already secured 9.1 million sq. ft in H1 2025—equivalent to 75% of their entire 2024 footprint—as they pivot toward high-value transformative technologies, underscoring a strategic realignment toward innovation-driven expansion across India's prime office markets,” Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

GCC activity up 30.8%

GCCs are leading the charge in India’s office market and on an H1 comparison, leased more space in Jan-June of 2025 than any previous calendar year for the same time period. This follows the momentum from last year when GCCs were the biggest occupier group by activity levels.

GCCs in the BFSI and manufacturing sector have been the standout performers, accounting for a cumulative 55.6% share in the H1 leasing volumes. Bengaluru remains the gateway city for GCCs, accounting for over 41% of demand in H1 2025. On an overall basis, tech leads in overall leasing volumes with a 30.3% share in H1, followed by Flex with 17.0%, BFSI with 16.2% and manufacturing with a 15% share. For Q2, tech remained the leader in absolute leasing terms accounting for a 30.8% share, with manufacturing and BFSI capturing the next two spots in terms of contribution, followed by Flex.

It is worth noting that India’s office market has bucked the global trends of workspace contraction. Headcount and footprint growth-oriented demand resulted in net absorption in H1 hitting 23.9 million sq. ft, which was also the highest ever among all previous H1 comparisons. On a y-o-y basis, net absorption was also up by 5.2% at 11.13 million sq. ft.

Indian office sector continues its remarkable growth trajectory despite international economic challenges, driven by GCCs, tech revival, and strong BFSI demand.

JLL says India office market momentum likely to remain immune to global headwinds; remains firmly on track to likely surpass 2024 peak levels. "India is a shining beacon on the international office market stage as it appears to be immune to the global uncertainties and headwinds. The market is tuned towards growth – across both headcount and real estate footprint metrics, even as robust office occupancies are already causing a space crunch in existing portfolios of large occupiers."