December 26, 2025: Despite global headwinds such as IT layoffs and tariff-related uncertainties, India’s office real estate market delivered a strong performance in 2025, with the Mumbai Metropolitan Region (MMR) playing a key role in sustaining leasing momentum. According to ANAROCK Research, net office absorption across the top seven cities touched an all-time high of approximately 55.16 million sq ft in 2025, marking a 10% increase over nearly 49.95 million sq ft in 2024.
While Bengaluru remained the largest office market with about 14.15 million sq ft leased during the year, it recorded a 5% annual decline. In contrast, MMR emerged as one of the stronger performers, registering a 15% jump in net office leasing, alongside Chennai (12%), Hyderabad (9%), and NCR (7%). Pune led growth rankings with a sharp 63 per cent rise in net absorption, while Kolkata saw a marginal 3 per cent dip.
On the supply side, new office completions across the top cities rose 8% year-on-year to 51.83 million sq ft in 2025. However, MMR was among the few markets to see a contraction in new supply, with completions falling 35% to around 6.05 million sq ft from 9.27 million sq ft in 2024. Hyderabad also recorded a decline, while Pune, Chennai, and NCR posted strong supply growth.
“India’s office real estate market veritably boomed in 2025, with net absorption and new completions both surging thanks to the country’s robust economic growth,” says Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group. “GCCs are leading the charge, capturing a record 41% share of gross absorption — up from 36% in 2024.”
Vacancy levels improved marginally, with overall vacancies dropping to 16.10%. In MMR, lower new supply helped vacancies fall from 15.50% to 14.70%. Average monthly office rentals rose 6% nationally, with MMR seeing a 5% year-on-year increase, underscoring steady demand in the region despite limited fresh supply.
Source: Investment Guru
