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Office space leasing hit record 82.6 mn sq ft in top 9 cities last yr: CBRE

Leasing of office spaces stood at a record 82.6 million sq ft last year across nine major cities on better demand from domestic and foreign companies, according to CBRE.

In a statement on Tuesday, real estate consultant CBRE said, "the office leasing activity hit a record high in 2025 for the third consecutive year, reaching 82.6 million square feet, registering a 1 per cent increase year-on-year (YoY)."

The cities tracked by CBRE are Delhi-NCR, Bengaluru, Mumbai, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, and Kochi.

The consultant noted that the office demand is driven by steady investment and the portfolio expansion strategies of global and domestic companies.

"India's office market continues to demonstrate strong fundamentals despite a rapidly shifting global backdrop, marked by geopolitical uncertainties and challenges surrounding cross-border talent mobility," said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa at CBRE.

He said the global firms are expected to expand their footprints in India through their Global Capability Centres (GCCs). These centres are projected to drive 35-40 per cent of total space absorption in 2026.

"Despite existing uncertainties, global firms continue to view India as a strategic destination for their multi-functional hubs delivering innovation and enterprise leadership," Magazine said.

In 2025, CBRE noted that technology firms and BFSI corporations dominated office leasing activity.

Ram Chandnani, Managing Director, Leasing, CBRE India, said the office leasing momentum could expand to tier-II cities as occupiers strategically expand their footprints beyond gateway hubs.

Commenting on the data, Mindspace REIT CEO & MD Ramesh Nair said, "2025 was a record year for India's office market, driven by strong GCC demand, high leasing activity and improving occupancies. Also, the growing institutionalisation of the sector through REITs and global capital has significantly improved quality, governance, and transparency."

These factors have positioned Indian offices as one of the best asset classes for long-term, stable returns, he added.

Ashwin Shrivastava, Sr. VP Leasing, Knowledge Realty Trust, said, "The cities of Bengaluru, Hyderabad and Chennai account for 50 per cent leasing in the country. The leasing strength is being shaped by technology and GCCs that are building long-term capability in India."

Source: The Economic Times