Bengaluru has reaffirmed its position as India’s commercial office capital, leading nationwide growth in the first half of 2025 as leasing activity surged across major cities. According to industry data, net office absorption in the top seven cities rose 40 per cent year-on-year to 26.8 million square feet, with Bengaluru contributing the largest share at 6.55 million square feet.
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Expansion due to Global Capability Centres (GCCs)
The city posted a robust 64 per cent growth in office absorption, driven largely by the expansion of Global Capability Centres (GCCs) and strong demand from technology firms. Bengaluru alone accounted for 5.45 million square feet of GCC leasing during the period, outpacing other metros such as NCR and Hyderabad.
New office supply also kept pace with demand, rising 25 per cent nationwide to 24.51 million square feet. Bengaluru continued to command a healthy share of this pipeline, while Pune stood out with exceptional growth of over 188 per cent in leasing and a sharp rise in supply.
Market fundamentals across India remained stable, with vacancy levels easing slightly to 16.3 per cent. Rentals held firm despite the surge in demand, inching up by 4 per cent to an average of Rs 88 per square foot per month.
The IT-ITES sector remained the backbone of leasing activity, contributing 29 per cent of total demand, while co-working operators and BFSI firms expanded their presence. With strong corporate confidence and sustained GCC momentum, Bengaluru’s office real estate market is expected to remain the country’s growth engine through 2025.