India office leasing volume to reach 50m sq ft this year

It is expected to surpass 2024 levels.

According to a Knight Frank report, office leasing momentum in India has remained strong, with 8.8 million square feet transacted in Q3 alone.

“Full-year leasing volumes are expected to reach nearly 50 million sq ft, surpassing the previous 41 million sq ft set in 2024. This growth has been driven by sustained commitments from Global Capability Centers (GCCs) and a revival in third-party IT services,” the report said.

Here’s more from Knight Frank:

Despite the imposition of an additional 25% tariff on Indian exports to the US, India’s GDP growth in the fiscal first quarter surpassed expectations to grow by 7.8%. This resilience was driven by robust domestic investment and supportive fiscal and monetary measures, including lower taxes and interest rates.

Leasing momentum in the country’s three largest office markets – Bengaluru, Delhi-NCR and Mumbai, remained sustained with 8.8 million sq ft of leases transacted during the quarter. While this represents a drop from the levels in previous quarters, momentum has remained resilient with leasing volumes poised to hit a record in 2025. 

With transaction volumes remaining robust, rents continued to register positive momentum, up 4.3% year-on-year on average across the three markets. The stable policy environment and massive talent pool continue to attract capital from domestic businesses and GCCs, while the revival in third-party IT services bodes well for the prospects of the office market.