1. Three major studies, one conclusion: 2025 was a record year

One study covering the top eight cities measured gross leasing of about 88.7 million sq ft in 2025 and record net absorption of 61.4 million sq ft, up 25% on 2024. A second, covering seven cities and excluding renewals, recorded 83.3 million sq ft of gross leasing and 57.0 million sq ft of net absorption, both its highest ever. A third, covering six cities, put gross absorption at 75.2 million sq ft, level with the previous peak.

The totals differ because the city sets and definitions differ. The direction does not. One forecast suggests leasing could reach 100 million sq ft a year within the next two years.

2. Capability centres now set the pace

Global capability centres leased between 28 and 31 million sq ft in 2025, or 33% to 38% of gross leasing depending on the study. In the first quarter of 2026 their share rose to about 40%.

Nearly 200 new capability centres have entered India in two years, and they now make up roughly half of all active space requirements. Deals above 100,000 sq ft accounted for 46% of absorption in the six largest cities.

3. Rents have crossed ₹100 as demand absorbs record supply

A record 53 million sq ft of new space was completed across the top eight cities in 2025, and demand absorbed it: net absorption of 61.4 million sq ft exceeded new supply.

Average rents across the eight cities crossed ₹100 per sq ft per month for the first time in the first quarter of 2026. Hyderabad led rental growth at about 12% year on year, followed by Delhi NCR at about 10%, with Chennai and Mumbai at about 6% each. Conditions are expected to stay favourable to landlords in key micro-markets through 2026.

4. What to expect through 2026

About 61 million sq ft of new supply is expected in 2026, much of it premium Grade A+, which widens choice for occupiers while rents stay firm. New completions in the first quarter were only 8.8 million sq ft because of project delays, and Pune, Hyderabad and Kolkata saw none.

Global uncertainty, including the West Asia crisis, may slow the pace of expansion in the near term while underlying demand remains resilient.

5. City by city