Bengaluru Tops India’s Office Market in H1 2025 with 10.4 Mn Sq Ft of Leased Space: Savills Report

Bengaluru retained its top spot in India’s office market during the first half of 2025, with gross absorption reaching 10.4 million square feet, a 1% rise from the same period last year, according to Savills . The city contributed 27% of total office space leasing among the six major Indian cities, maintaining its status as the country’s leading office space provider.

“The first half of the year marked an upward trajectory for India’s commercial office market, with gross leasing reaching 38 million sq ft, mainly led by sustained demand from global capability centres (GCCs),” Naveen Nandwani, managing director of commercial advisory and transactions at Savills India, said. “Occupiers from IT BPM, flexible workspace, and BFSI sectors remained key contributors, supported by resilient economic fundamentals despite global uncertainties.”

Nationwide, office leasing across six major cities rose 7% year-on-year to 38.2 million sq ft, while new supply grew by 44% to 25.3 million sq ft. India’s total Grade A office stock reached 822.9 million sq ft by June, with vacancy levels dipping to 14.7%, down from 15.9% last year. 

Full-year leasing is expected to cross 70 million sq ft as occupier confidence grows.

Bengaluru’s new office supply more than doubled YoY, reaching 8.6 million sq ft, driven by strong developer confidence. The city’s Grade A stock rose to 244.9 million sq ft, with projections of 253.9 million sq ft by year-end.

GCCs were the top demand drivers, accounting for nearly 67% of Bengaluru’s leasing activity, reinforcing the city’s image as a global tech and back-office hub. IT-BPM, engineering and manufacturing firms made up around 60% of all leased spaces. Large deals (over 1 lakh sq ft) were prominent, reflecting corporate needs for large and high-quality offices.

In comparison, Delhi-NCR recorded 6.8 million sq ft of leased spaces, led by IT-BPM and BFSI sectors. GCCs accounted for over 25% of the region’s leasing. Mumbai followed with 6.7 million sq ft, dominated by tech and financial services firms, which together accounted for 58% of deals.

Meanwhile, Chennai saw a 14% YoY increase with 5.5 million sq ft of leasing, led by large deals from IT-BPM, BFSI and flexible workspace sectors. Hyderabad, however, experienced a 20% drop with 4.8 million sq ft, amid slow decision-making and changing occupier strategies, although GCCs still contributed 50% of the leased spaces.

Pune had the highest half-yearly supply in two decades, adding 7 million sq ft, a 2.4 times increase from last year. Gross absorption stood at 4.1 million sq ft, with BFSI-led GCCs accounting for 61% of total GCC leasing in the city.

The growing focus on future-ready, tech-enabled and sustainable workspaces is driving demand across cities. “The continued shift toward future-ready, tech-enabled and sustainable workspaces is reinforcing India’s position as a strategic node in global office portfolios,” Nandwani added.