In India’s real estate market, office space is witnessing strong demand not only from domestic companies but also from international firms. This has led to significant growth in the office leasing market across the country’s major metro cities. In 2024, the top eight metro cities Mumbai, Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, and Pune recorded a gross leasing volume of approximately 89 million sq. ft. Experts estimate that in 2025, this figure could exceed 90 million sq. ft., setting a new record. Reports indicate that in just the first six months of this year, around 42 million sq. ft. of leasing has already been recorded.
Real estate experts note that the increasing gross leasing demand in India, despite global financial challenges, reflects the strength and progress of the country’s economy. A key driver is the rapid expansion of Global Capability Centers (GCCs) in India. With a growing talent pool and improved infrastructure, global companies and multinational corporations are keen to establish GCCs on a large scale in the country. Alongside this, flexible workspace operators in Indian metro cities are also seeing significant growth to meet evolving corporate requirements.
The central government’s decision to designate up to 50% of Special Economic Zone (SEZ) buildings as non-SEZ domestic tariff areas has made them highly attractive to both national and international companies. This is especially significant in cities like Hyderabad, where leading firms are planning major expansions of their operations. For instance, Microsoft, which already has one of the largest campuses in Hyderabad, has leased an additional building in the city.
Experts attribute the growth in the office space market to factors such as economic growth, availability of talent, and SEZ policy reforms. This surge in demand is expected to generate more employment opportunities and drive property value appreciation, providing a strong impetus to the real estate market.