India’s office leasing surges 40% in H1 2025: ANAROCK
Bengaluru emerged as the dominant market, capturing 24% market share with 6.55 Mn sq ft absorption, reflecting a 64% Y-o-Y increase.
Bengaluru emerged as the dominant market, capturing 24% market share with 6.55 Mn sq ft absorption, reflecting a 64% Y-o-Y increase.
The report shows that 87% of markets worldwide saw positive annual growth, with Turkey, North Macedonia, and Portugal topping the global rankings. At the other end, Mainland China and Hong Kong SAR recorded the steepest annual declines.
For a wider perspective, ANAROCK analysed trends in capital appreciation and rental growth across 14 of the most active micro markets in Bengaluru, Hyderabad, Pune, NCR, MMR, Kolkata, and Chennai.
The AUM of arbitrage funds grew by 22.2% during the June 2025 quarter compared to the previous quarter March 2025 while Multi Asset Allocation funds increased their AUM by 15.4% in the same period.
Stability in interest rates offers clarity for both developers and homebuyers, enabling structured planning and decision-making.
Given the incomplete transmission of the previous rate cuts, the RBI is expected to hold off on further easing, allowing time for the full impact of earlier measures to materialise.
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While foreign investments saw a 39% YoY decline, domestic capital surged by 53% to USD 1.4 billion, accounting for 48% of the total inflows in H1 2025.
There was an annual sales drop of 20%, with approx. 96,285 units sold in the quarter against approx. 1,20,335 units in Q2 2024.
Bengaluru led leasing activity during Q2 2025 with a 27% share at 4.8 million square feet, reaffirming its position as India’s top office market.