Commercial real estate sector net leasing increased 40% year-on-year to touch 26.8 million sq ft across the top 7 cities, according to a report released by ANAROCK, a real estate consultancy.
According to the report, Bengaluru maintained market leadership with 6.55 million sq ft of absorption, while Pune emerged as the fastest-growing market with 188% growth.
The report said that Hyderabad had the second-highest leasing at 4.7 million sq ft, followed by Pune at 5.7 million sq ft, Delhi NCR at 3.7 million sq ft, Mumbai Metropolitan Region at 1.9 million sq ft, Chennai at 1.5 million sq ft, and Kolkata at 0.1 million sq ft.
According to the report, Pune contributed 31% of the total supply and emerged as the top performer with 533% growth, delivering 5.7 million sq ft compared to just 0.9 million sq ft in H1 2024. This surge stems from the completion of several large-scale IT parks and increased corporate expansion into Pune as a cost-effective alternative to Mumbai.
Conversely, MMR experienced a 45% decline to 1.9 million sq ft, attributed to land acquisition challenges, regulatory delays, and developers’ preference for refurbishment over new construction in the saturated Mumbai market, the report said.
On the other hand, Delhi NCR reported 35% Y-oY growth, registering 3.7 million sq ft new supply. The Eastern region, represented by Kolkata, remained marginal with minimal supply addition of 0.1 million sq ft, reflecting limited corporate demand and slower economic activity in the area.
“New office supply increased 25% to 24.51 million square feet, creating balanced market dynamics. Vacancy rates improved marginally to 16.3%, and average rentals grew 4% to INR 88 per square foot per month. The IT-ITES sector dominated with 29% market share, followed by co-working spaces at 22%,” Peush Jain, MD – Commercial Leasing & Advisory, ANAROCK Group.
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IT sector has 29% market share in leasing
According to the report, IT-ITeS sector has marginally expanded its transaction share to 29% in H1 2025 from 28% in H12024. Co-working space providers have sustained their strong market position at 22%, representing a modest 1% increase from the previous year, driven by continued demand for flexible workspace solutions and expansion by established operators.
The BFSI sector has maintained consistent performance at 18%, driven by the expansion strategies of domestic banks and the establishment of new financial technology centres. The report said E-commerce companies have increased their footprint to 4% from 3%, reflecting the sector’s expansion plans following growing consumer spending patterns.
The consultancy businesses have grown to 9%, benefiting from increased demand for professional services and advisory capabilities.
However, the manufacturing and industrial sector experienced a notable decline to 13%from 15%, primarily due to cautious expansion strategies amid global supply chain uncertainties. The miscellaneous category decreased to 5% from 8%, indicating consolidation within traditional office-using sectors and more focused leasing strategies across emerging industries.
