“The Indian office market has demonstrated remarkable resilience and growth in Q12025, underpinned by the strongest-ever performance by domestic occupiers which was driven by flex and third-party tech firms. A strong performance by BFSI along with the aforementioned ones has propelled net absorption to 12.78 million sq ft in Q1, up 54.0% year-on-year and further highlighting the expansion-driven demand in the India office market. This coupled with a trailing 12-month (April 2024-March 2025) gross leasing of 81.5 million sq. ft, indicates that the market is poised for another potential record-breaking performance in 2025,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL

Domestic Occupiers Surge: Leasing by domestic occupiers was year-over-year higher in Bengaluru, Hyderabad, Mumbai and Pune. Flex was the dominant domestic occupier segment in Bengaluru and Pune accounting for 70.0% and 61.8%, respectively in the domestic occupier space take-up. BFSI was the biggest contributor in Mumbai while Tech was the major contributor in Hyderabad in the domestic occupiers’ leasing activity.

“The Q1 2025 office leasing data underscores India's position as a global business hub, with Bengaluru and Delhi NCR leading the charge, collectively accounting for 43.5% of leasing activity. The dominance of global occupiers, particularly GCC set-ups which comprised 64.1% of international leasing, reflects India's growing appeal as a strategic location for multinational operations. The market's robustness is further evidenced by a significant drop in vacancy rates to a four-year low of 15.7%, with prime locations experiencing single-digit vacancies. Tight vacancy levels in core markets coupled with steady demand, signal a bullish outlook for India's commercial real estate sector,” said Rahul Arora, Head - Office Leasing & Retail Services, Senior Managing Director (Karnataka, Kerala), India, JLL.

 Gross Leasing by domestic occupiers (million sq. ft)