NEW DELHI : India’s commercial property market recorded a strong upswing in the first six months of 2025, with office leasing across the top seven cities climbing 40% year-on-year to reach 26.8 million sq ft, according to real estate consultancy ANAROCK.

Bengaluru led the pack with 6.55 million sq ft of space absorbed, reinforcing its position as the country’s tech and corporate hub. Pune, however, emerged as the star performer, registering a 188% surge in leasing activity, supported by a remarkable 533% jump in new office supply.

Other major markets also performed steadily: Hyderabad absorbed 4.7 million sq ft, Delhi-NCR 3.7 million sq ft, Mumbai Metropolitan Region (MMR) 1.9 million sq ft, Chennai 1.5 million sq ft, and Kolkata 0.1 million sq ft.

Fresh office supply rose by 25% to 24.5 million sq ft, easing vacancy levels to 16.3%. Average rentals increased by 4%, reaching ₹88 per sq ft per month, reflecting steady demand across segments.

By sector, IT and ITeS firms dominated with a 29% share of leasing activity, while flexible workspaces maintained a significant 22%. The banking and financial services industry (BFSI) accounted for 18%, consultancy firms contributed 9%, and e-commerce rose slightly to 4%. Meanwhile, leasing by manufacturing, industrial and other sectors saw a marginal decline.

Analysts say the strong numbers point to continued confidence in India’s office market, supported by robust hiring in technology and services, as well as growing adoption of co-working spaces.