India’s office real estate market is setting new records in 2025, with leasing activities surpassing 80 million square feet, marking an exceptional performance on the global stage. According to Gulam Zia from Knight Frank, this surge is largely fueled by the rapid expansion of flexible office spaces, which are reshaping how companies occupy commercial real estate.

The Indian office market has not only bounced back but is thriving amid global uncertainties. The first nine months of 2025 saw gross leasing cross the 50 million square feet mark, underscoring deep confidence among occupiers across multiple industries. This momentum is particularly strong in major cities like Bengaluru, which continues to lead as a premier hub with vast talent pools and scale, supporting India’s robust commercial real estate sector.

Flex spaces have become a key growth driver by offering agility and adaptability that businesses crave in a post-pandemic world. Companies are increasingly favoring flexible work environments that can quickly adjust to changing workforce needs rather than committing to traditional, static office setups. This trend has led to a notable increase in demand for co-working and hybrid office models, pushing leasing activity to unprecedented levels.

Knight Frank’s data highlights a 35% year-over-year increase in net absorption across the top eight Indian cities for the third quarter of 2025. Such growth reflects sustained expansion and a strong appetite among both startups and established enterprises to secure office spaces that align with their evolving work cultures.

Rental rates across prime locations are firming up as vacancy levels shrink, signaling a tightening market that benefits landlords and investors. The increased leasing activity not only bolsters the office market but also signals broader economic optimism as companies continue to expand operations and hire talent.

Moreover, the rise in flexible office spaces is encouraging a more dynamic real estate landscape, with innovative leasing models and premium amenities becoming standard offerings. This evolution meets the demands of a modern workforce that values flexibility, collaboration, and technology-enabled environments.

Overall, India’s office market in 2025 stands out as a beacon of growth and resilience amidst a complex global economic backdrop. With the continued rise of flex spaces and strong leasing trends, experts like Gulam Zia are optimistic about the sustained upward trajectory of India’s commercial real estate sector.

As businesses keep adapting to new work paradigms, India’s office real estate market is positioned to remain vibrant and attractive for investors, developers, and occupiers alike for the foreseeable future.