Bengaluru leads India's net office leasing space with a 64% rise

India's commercial office leasing space has reached a growth of 40%. The net office leasing space has grown rapidly across metropolitan cities, and Bengaluru witnesses the highest addition of new office supply.

The net office space of H1 2025 has increased from 19.08 million sq ft in H1 2024 to 26.8 million sq ft. Bengaluru's office leasing space reached 6.5 million sq ft between January to June 2025. It was a 64% increase across the 4 million sq ft in the same time period last year.

The Mumbai Metropolitan Region net office tops by seeing a 43% increase with 4.5 million sq ft of office space. Kolkata was the only city to see a small drop in net office space to 0.45 million sq ft in H1 2025 from 0.93 million sq ft in H1 2024.

Top 7 cities in office completions

The top 7 cities of India that recorded a 25% increase in terms of office completions to 24.51 million sq ft in H1 2025 from 19.65 million sq ft in H1 2024 are

• Bengaluru
• Chennai
• Hyderabad
• Pune
• MMR
• Delhi-NCR
• Kolkata

Bengaluru was at the top among all other top cities with a new office supply of 6.91 million sq ft in the first half of 2025. As a result, residential real estate started to develop near the office spaces to reduce travel time. Upcoming projects like Prestige Evergreen are near major office spaces, as it is in a prime IT area, and it is the best time to invest in it at an early stage and get high ROI later.

Hyderabad and MMR were the cities to see a drop in new office supply in H1 2025, by 17% and 45%. MMR added only 1.9 million sq ft of office space in H1 2025. It was a decrease from 3.47 million sq ft in H1 2024. Hyderabad saw 4.7 million sq ft of new supply in H1 2025. It was a decrease from 5.68 million sq ft in H1 2024.

Pune recorded a high yearly jump in new office supply, at a rate of 533%. Pune jumped from just 0.9 million sq ft in H1 2024 to 5.7 million sq ft in H1 2025.

The IT sector led the office space demand with a 29% overall leasing share. It is followed by the coworking sector with 22% of the share. Then comes the Banking and Financial Services sector with a share of 18%.

Increase in Office rentals

The average office rentals increased by 5% monthly. The increase was from Rs 84 per sq ft in H1 2024 to Rs 88 per sq ft in H1 2025. Chennai had the highest 6% increase in monthly office rentals. The rate at Chennai increased from Rs 72 per sq ft in H1 2024 to Rs 76 per sq ft in H1 2025. After that, Bengaluru and NCR had 5% increase yearly.