Bengaluru, Delhi Lead as India’s Office Absorption Nears 57 Million Sq Ft: Savills India

India’s office real estate market continued to show remarkable strength in 2025, with a total gross absorption of 56.8 million sq ft recorded between January and September, according to a latest report by Savills India. The country’s two largest business hubs—Bengaluru and Delhi-NCR—emerged as clear leaders in office space leasing, driven by steady demand from IT, Global Capability Centres (GCCs), and BFSI sectors.

The report highlighted that India’s office market is well on course to surpass its previous record of 75 million sq ft of annual absorption by the end of 2025. This reflects the sector’s resilience amid global uncertainties and its ability to attract both domestic and multinational occupiers.

During the first nine months of the year, new office supply increased by nearly 10% year-on-year, reaching 35.4 million sq ft, while the overall vacancy rate eased to around 14%. This indicates a healthy balance between supply and demand, supported by ongoing expansion from technology firms, co-working operators, and financial institutions.

In the third quarter alone, India recorded 17.9 million sq ft of office space absorption, led by Delhi-NCR with 5 million sq ft, followed by Bengaluru at 3.9 million sq ft and Pune with 2.8 million sq ft. Despite a moderation from the strong first half, Bengaluru retained its year-to-date lead, clocking 14.6 million sq ft in total leasing activity—more than any other city in India.

Bengaluru’s growth was primarily fueled by technology companies and flexible workspace operators, which together accounted for nearly three-fourths of total leasing activity in the city. Delhi-NCR followed closely with 11.8 million sq ft, supported by strong leasing from IT-BPM and co-working segments.

Savills noted that large-scale transactions over 100,000 sq ft made up 42% of all deals, underlining occupier preference for Grade A spaces. Bengaluru, Delhi, Pune, and Hyderabad remained hotspots for GCCs, which accounted for over 30% of total office leasing in 2025.

With strong occupier confidence and continued expansion by global firms, India’s office market remains firmly on track for another record-breaking year.