### India’s Commercial Real Estate Market: A Resilient Surge Amidst Uncertainty In 2025, India's commercial real estate market demonstrated remarkable resilience, achieving record leasing figures despite uncertainties in the IT sector. The office market alone saw an impressive **71.5 million square feet** leased, driven primarily by demand from Global Capability Centers (GCCs) and technology firms. Concurrently, the retail sector is poised for significant growth, with projections indicating a leasing volume of **9 million square feet** by the end of 2025, marking a post-pandemic recovery. This growth is attributed to increased consumer demand and new mall supply, reflecting a broader trend of recovery and expansion in the Indian real estate landscape. ### Key Segments of the Commercial Real Estate Growth 1. **Office Leasing Trends** - The office leasing market recorded a **6% increase** in 2025, reaching **71.5 million square feet** across major cities, with Bengaluru leading the demand [https://timesproperty.com/news/post/office-leasing-in-india-rises-6-pc-in-2025-blid11127]. - The demand was primarily driven by technology firms and GCCs, which accounted for a significant portion of the leasing activity [https://www.newkerala.com/news/o/india-grade-office-leasing-surges-pc-cross-71-183]. 2. **Retail Leasing Dynamics** - Retail leasing is set to hit a record **9 million square feet** in 2025, a **15% increase** from the previous year, fueled by new mall developments and strong retailer demand [https://www.rediff.com/business/report/leasing-of-retail-spaces-in-malls-high-streets-up-15-this-year/20251223.htm]. - The fashion, food, and entertainment sectors are leading this growth, indicating a robust recovery in consumer spending [https://www.bizzbuzz.news/industry/realestate/retail-leasing-to-touch-11-mn-sqft-in-2026-1382582]. 3. **Market Outlook and Future Projections** - The positive trends in both office and retail leasing suggest a strong outlook for 2026, with expectations of continued growth in leasing activity [https://www.devdiscourse.com/article/business/3740460-indias-office-space-boom-leasing-trends-and-market-dynamics]. - However, concerns about supply constraints in high-demand areas could impact future growth if not addressed [https://www.moneycontrol.com/news/business/real-estate/retail-leasing-ends-2025-on-a-high-will-supply-crunch-spoilt-the-party-in-2026-13736880.html]. ### Supporting Data and Evidence - **Office Leasing Statistics**: - **71.5 million sq ft** leased in 2025, a **6% increase** from 2024 [https://www.newkerala.com/news/o/india-grade-office-leasing-surges-pc-cross-71-183]. - Bengaluru accounted for nearly **one-third** of the total office leasing demand [https://www.newkerala.com/news/o/india-grade-office-leasing-surges-pc-cross-71-183]. - **Retail Leasing Statistics**: - Expected to reach **9 million sq ft** in 2025, marking the highest level since the pandemic [https://www.hindustantimes.com/real-estate/indias-retail-real-estate-segment-is-expected-to-lease-over-9-million-sq-ft-of-space-by-the-end-of-2025-report-101766467781088.html]. - A **15% increase** in leasing activity compared to 2024 [https://www.rediff.com/business/report/leasing-of-retail-spaces-in-malls-high-streets-up-15-this-year/20251223.htm]. ### Conclusion: A Promising Future for Indian Real Estate The Indian commercial real estate market is experiencing a **robust recovery**, characterized by significant growth in both office and retail leasing sectors. 1. **Record office leasing** of **71.5 million sq ft** in 2025 highlights strong demand from technology and GCC sectors. 2. **Retail leasing** is projected to reach **9 million sq ft**, driven by new supply and consumer demand. 3. **Future growth** remains promising, although potential supply constraints could pose challenges. Overall, the data indicates a vibrant and resilient real estate market in India, setting a positive tone for the upcoming years [https://urbanacres.in/india-commercial-real-estate-sees-historic-absorption-despite-it-uncertainty].