Office leasing activity in India rose sharply last year, with net absorption increasing by 25% to a record 61.4 million square feet across eight major cities, according to property consultancy Cushman & Wakefield. The figure compares with 49.1 million square feet leased in the previous year, highlighting a strong recovery in commercial real estate demand.
Net absorption measures the net change in occupied office space during a year and is seen as a key indicator of underlying demand. Cushman & Wakefield said leasing activity improved in Bengaluru, Hyderabad, Pune, Delhi-NCR and Chennai, while Mumbai, Kolkata and Ahmedabad recorded a decline.
“The performance goes beyond record numbers and reflects a long-term growth trajectory supported by strong fundamentals,” said Anshul Jain, Chief Executive for India, Southeast Asia, the Middle East and Africa at Cushman & Wakefield. He added that demand is expected to remain robust in 2026, driven by the expansion of global capability centres in India and increasing adoption of technology across sectors.
Chennai saw the sharpest rise, with net office leasing nearly tripling to 7 million square feet. Delhi-NCR also recorded strong growth, with leasing rising 82% to 10.9 million square feet. Pune reported a 65% increase to 8.2 million square feet, while Hyderabad saw a 15% rise to 9.1 million square feet.
Bengaluru, India’s largest office market, remained broadly stable, with leasing inching up to 14.4 million square feet. By contrast, Mumbai experienced a 12% decline in demand to 9.6 million square feet. Kolkata and Ahmedabad also saw weaker activity, with leasing falling by 5% and 28% respectively.
Gross leasing, which includes fresh leases, renewals and pre-commitments, reached an all-time high of 88.7 million square feet, marginally higher than the previous year. New office supply also increased, rising 17% to around 53 million square feet, reflecting continued confidence among developers despite uneven demand across markets.
