India office leasing volumes soar 20% to 1.2m sqm in Q2

This is the highest second-quarter volume on record.

According to a Knight Frank report, office leasing volumes in India’s three largest office occupier markets (Bengaluru, Mumbai, and Delhi-NCR) rose over 20% to reach 1.2 million sqm in Q2 2025, as business sentiment remained robust despite geopolitical headwinds.

Consequently, rental growth accelerated during the quarter to rise 4.5% year-on-year.

Here’s more from Knight Frank:

Global Capability Centres (GCCs) made up the largest share among all occupier segments, with Bengaluru once again dominating GCC-related leasing activity. The city continued to headline India’s occupier markets, with the 1.7 million sqm leased in H1 2025 already surpassing volumes for the whole of 2024.

NCR also scaled new heights during H1 2025, with the 700,000 sqm leased a record for the city. Third-party IT service providers have re-emerged as a major force in the first half of 2025, more than doubling their 10% share from the same period last year, as AI adoption reinforces India’s position as a preferred hub for outsourced IT services.

The increasing impact of GCCs and the steady revival of third-party IT services are expected to continue powering demand in the country.