Fuelled by the global capability centre (GCC) boom, gross leasing of office space across top eight cities soared 5 per cent to touch 21.4 million square feet (msf) in the second quarter of calendar year 2025, according to Cushman & Wakefield’s Q2 India Office Market report.

IMAGE: Employees work at their desks inside Tech Mahindra’s office in Noida. Image used for representation purpose only. Photograph: Adnan Abidi/Reuters

GCCs contributed 24 per cent of Q2 leasing at 5.1 msf, led by Bengaluru and Pune.

H1 2025 saw a record 11.4 msf in GCC leasing, driven by IT-BPM and E&M.

IT-BPM remained the top occupier with 34 per cent of Q2 demand, followed by flex operators (18 msf) and BFSI and Engineering and Manufacturing sectors.

“The GCC segment continues to be a key driver of demand, contributing a record 27 per cent of total leasing in H1.

“These centres are maturing in complexity and scale, and India’s deep talent pool and improving infrastructure continue to reinforce its positioning as a global hub.

“At the same time, we are seeing more diverse sources of demand from domestic corporates, financial institutions, and flex players.

“We expect this momentum to continue, buoyed by easing inflation, expected rate cuts, and the continued evolution of India as a strategic business location,” said Anshul Jain, chief executive, India, SEA & APAC Tenant Representation, Cushman & Wakefield.

With total leasing in the first half of the year at approximately 42 million square feet, the sector is on pace to exceed 90 million square feet in annual activity, potentially setting a new record.

The strong leasing figures underscore sustained demand from both global and domestic occupiers, led by GCCs, IT-BPM firms, flex space operators, BFSI, and engineering and manufacturing companies.

“India’s office market continues to outperform global peers, underpinned by a solid economic outlook and long-term occupier confidence.

“Our forecast of more than 90 million square feet of gross leasing this year reflects the sector’s structural strength, particularly as we see sustained growth in key industries such as technology, BFSI, and engineering,” Jain said.

Cushman & Wakefield noted that this momentum builds on 2024’s historic performance of approximately 89 million square feet, with H1 2024 figures largely in line with this year’s.

With continued momentum, 2025 will mark the second consecutive year of over 85 million square feet in gross leasing, signalling the establishment of a new baseline for market performance.

In terms of cities, Bengaluru (5.0 msf), Delhi NCR (4.6 msf), and Mumbai (3.9 msf) accounted for approximately 63 per cent of the total quarterly leasing volume.

The remaining share came from Pune (3.3 msf), Chennai (2.2 msf), Hyderabad (1.7 msf), Kolkata (0.5 msf), and Ahmedabad (0.2 msf).

Furthermore, net absorption reached 13.5 msf in Q2 2025, up 19 per cent year-on-year, totalling 27.8 million square feet in H1.

Delhi NCR, Pune, and Chennai recorded their highest-ever half-yearly absorption, signalling strong long-term occupier confidence.

Fresh leases made up 77 per cent of H1 2025 activity, continuing a trend since 2022.

Pre-commitments rose to 10 per cent, indicating tightening supply and rising occupier urgency.

On the supply side, India’s top eight office markets recorded 12.5 msf of new completions in Q2, marking a 53 per cent year-on-year and 17 per cent quarter-on-quarter rise.

H1 2025 supply totalled 23.2 msf, a 14 per cent increase year-on-year, with Bengaluru and Pune accounting for over 60 per cent.

Pune led with 4.8 msf in Q2, its highest half-year supply to date.

“The growth is being fuelled by a convergence of trends, expansion of existing occupiers, rapid scaling of GCCs, and entry of new domestic and global firms.

“But supply is lagging in core locations, creating a landlord’s market.

“Occupiers looking for high-quality space need to act early, especially as pre-commitments are on the rise and rentals are climbing in prime markets,” said Veera Babu, executive managing director, Tenant Representation, Cushman & Wakefield.