Bengaluru sees 59pc growth in office leasing to record 28.7 mn sq ft in 2025: Knight Frank

New Delhi, Jan 7 (PTI) India's largest office market Bengaluru witnessed a record gross leasing of workspaces last year at 28.7 million square feet, an annual increase of 59 per cent, on high demand especially from foreign firms looking to establish Global Capability Centers (GCCs), according to Knight Frank.

In a virtual press conference on Wednesday, real estate consultant Knight Frank India highlighted that India's eight major offices saw a 20 per cent increase in gross leasing to an all-time high of 86.4 million square feet.

Bengaluru continued its dominance as the largest office market with gross leasing of 28.7 million square feet, a historic best for this market, it added.

Knight Frank India CMD Shishir Baijal said, "India's office market delivered an exceptional performance in 2025, decisively surpassing its previous peak and underscoring the depth and breadth of occupier confidence across the country." The current cycle marks not just a numerical high but a structural shift in how global and domestic enterprises view India as a long-term business destination, he added.

As per the data, the gross leasing of office spaces in Hyderabad rose 10 per cent to 11.4 million sq ft during 2025.

Pune saw a 36 per cent increase in leasing to 10.8 million sq ft, while Chennai witnessed a 24 per cent rise in demand to 10.1 million sq ft.

In Kolkata, the leasing grew 69 per cent to 2.3 million sq ft.

However, the office leasing fell 11 per cent in Delhi-NCR to 11.3 million sq ft. Mumbai too saw a 5 per cent fall at 9.8 million sq ft.

In Ahmedabad, the leasing of office space declined 34 per cent to 2 million sq ft during the 2025 calendar year from the preceding year.

Viral Desai, International Partner, Senior Executive Director- Occupier Strategy and Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank India, said, "From a sectoral perspective, 2025 marked a decisive shift toward globally aligned demand patterns." GCCs accounted for 38 per cent of total leasing, while third-party IT services and flexible workspaces recorded their highest-ever absorption, he added.

Commenting on the data, Vijay Rajagopalan, Senior VP Leasing North & West, Knowledge Realty Trust, said Mumbai reaffirms its position as India’s financial capital, with BFSI driving demand of office space.

"A continued flight to quality and consolidation by Indian conglomerates reflect strong confidence in India’s economic momentum," he said.

Gurugram sustained robust leasing activity, Rajagopalan said, adding that the city also remains a key hub for GCC expansion, backed by scalable Grade A supply and a strong talent ecosystem. PTI MJH MJH ANU ANU