India’s commercial real estate sector is showing remarkable resilience through the first nine months of 2025, even as residential property sales cool off. Office and industrial & logistics (I&L) leasing have reached record highs, underpinned by robust demand from Global Capability Centres (GCCs), e-commerce, 3PLs and manufacturing firms. According to industry data, office leasing in top cities rose 2 % year-on-year, with about 59.6 million sq ft leased during January–September 2025. The I&L segment surged even more aggressively, posting ~23.4 % growth, with leasing volumes of ~55.3 million sq ft.
In stark contrast, housing sales in India’s top seven cities declined by about 20 % over the same period. This divergence reflects shifting trends: while commercial users expand and require more space, consumers remain cautious about home purchases amid interest rate pressures and affordability challenges.
The office leasing boom is largely propelled by GCCs, which accounted for nearly 39 % of the total absorption. Bengaluru, Pune and Delhi-NCR together contributed more than two-thirds of this leasing activity. On the industrial front, demand from logistics firms and supply chain players is concentrated in Delhi-NCR, Mumbai and Pune, which together made up over half the leasing volume.
This pattern suggests that India’s real estate future may lean more heavily on commercial and industrial growth, at least while residential demand remains subdued. For developers and investors, the shift offers new opportunities in commercial corridors and logistics hubs — even as the residential market waits for more favorable conditions.
