Bengaluru Leads India Office Market with 4.8 Million Sq Ft Leasing | Commercial Real Estate Growth

Industry reports indicate that Bengaluru has continued to spearhead India's commercial real estate activity during the second quarter of 2025, capturing a dominant 27% market share with 4.8 million square feet of leasing transactions. This performance has reinforced the city's status as the nation's premier office destination.

Multi-City Growth Reflects Robust Market Fundamentals

Market analysts reveal that Hyderabad, Mumbai and Chennai have also demonstrated strong occupier engagement, with each metropolitan area recording leasing volumes exceeding 2.5 million square feet during the quarter. This broad-based demand pattern reflects the strength across India's established office markets, which aligns with trends seen in global investment surge patterns witnessed in recent quarters.

Property market experts note that five out of the seven leading office markets in India have witnessed growth in Grade A space absorption on an annual basis. This momentum signals increasing occupier confidence, particularly from flexible workspace operators and companies across technology, banking, financial services, insurance (BFSI), and engineering & manufacturing sectors.

Supply Concentration in Key Southern Markets

Real estate professionals report that Bengaluru and Hyderabad together accounted for more than half of the quarter's new supply additions, while Pune also recorded notable completions totaling 3.3 million square feet. The supply concentration in these markets reflects the ongoing development momentum in India's key commercial hubs.

On a half-yearly basis, new supply remained concentrated in Bengaluru, Pune and Hyderabad. Industry data shows these three cities cumulatively represented 70% of the 24.8 million square feet of completions recorded in the first half of 2025. This supply pipeline supports the growth trajectory seen in India's top real estate investment destinations.

Market Trajectory Points to Strong Annual Performance

Commercial real estate specialists indicate that India's office market continues its upward trajectory in 2025, building on the momentum established over the past two years. The robust performance in the first half, with demand reaching 33.7 million square feet representing a 13% year-on-year increase, signals sustained occupier confidence and strong market fundamentals.

Market observers highlight that the fact that five of the seven major cities recorded over 2.0 million square feet of leasing each in a single quarter demonstrates the depth and vibrancy of India's office market. This performance pattern mirrors the growth seen in other segments, including Mumbai's high-end residential market developments.

Industry analysts note that backed by a diversifying occupier base, steady supply pipeline and growing investor appetite, 2025 is positioning itself as another impressive year for commercial real estate in India. Market projections suggest that overall office space demand appears well-positioned to reach 65-70 million square feet by the end of the year, reflecting the sector's continued strength amid India's broader economic growth.

Disclaimer: This news article is based on industry reports and market data. The information provided is for general informational purposes only and should not be considered as investment advice. Readers are advised to conduct their own research and consult with qualified professionals before making any real estate or investment decisions. Market conditions and data may change, and past performance does not guarantee future results.