According to a report released on Thursday by real estate firm Knight Frank India, India's top eight office markets saw an unprecedented bounce in transactions, which reached 28.2 million sq ft (MN SQ Ft) in Q1 (January-March) 2025-which is the highest record in one quarter.

Inspired by strong economic speed, the confidence of the officers brought the amount of transactions to new heights. The report states that it shows a significant increase of 74 percent year-on-year (YOY), which is 48 percent higher than the previous summit in Q3 2024.

Bengaluru led the office market expansion by registering 12.7 million sq ft transactions in Q1 2025, which was 45 percent of the total office space acquisition. The office transaction in Bengaluru recorded a huge increase of 259 percent as against the first quarter of 2024. The area transacted in Bengaluru was due to pre-disciplines of 58 percent or 0.7 million square meters (7.4 million sq ft).

Hyderabad maintained a steady speed, reached 4 million sq ft in the demand of the office. Pune with 3.7 million sq ft and Mumbai with 3.5 million square feet also set new quarterly records of transactions. Bengaluru and Pune surpassed the 74 per cent national annual growth rate, which emerged as the major volume driver of India's office market.

The office transactions were mainly operated by the Global Capability Center (GCC), with 12.4 million sq ft transactions, which was 44 percent of the total market share. Third-party IT services with 5.5 million sq ft secured 19 percent market share, followed by flex operators with 5.5 million sq ft, who secured 20 percent market share.

Bengaluru dominated the amount of transactions in GCC and Third-Party IT services, where the city had 8 million square feet and 2.1 million square feet of transactions respectively. Pune secured a leading position in the Flex Space Transaction, where Flex operators performed 1.61 million sq ft transactions during the quarter.

Global Capability Centers played an important role in furthering India's office market, which had a 44 percent stake in the total demand, with 12.4 million sq ft transactions. Bengaluru dominated by contributing about 8 million sq ft or 65 percent of all GCC transactions in the first quarter of 2025. Shishir Baijal, President and Managing Director of Knight Frank India, said: “The first quarter of 2025 was an extraordinary period for the Indian office place market.

The GCC demand is constantly touching the new high level, which is strengthening India's global perception as a long -term investment destination. ” He said, “With the delay in completion of consecutive transactions since 2021, the vacancy level declined from 17.2 percent to 14.3 percent in the first quarter of 2025. Fales have also increased since the beginning of 2022 due to a decrease in supply in top markets. ” The report states that India is moving forward on development parameters, so the office location market is facing minimal challenges besides limited supply and is in good position to maintain its speed by 2025.