October 1, 2025

India’s office real estate market is sizzling hot! In the third quarter (Q3) of 2025, net absorption — the total office space taken up — soared by an exciting 35% year-on-year to 16.3 million square feet (msf) across the top 8 cities. This shows a strong appetite for office space as companies keep expanding. According to Cushman & Wakefield, the market has already absorbed 44.3 msf in the first nine months of 2025, which is almost 87% of the total 50.7 msf absorbed during the entire year of 2024. With one quarter still left, the market is set to smash last year’s records and reach new heights! Delhi NCR crowned the top spot by taking up 3.8 msf of space, and Bengaluru wasn’t far behind with 3.5 msf. Both these cities together accounted for nearly half of Q3’s absorption. Mumbai (2.1 msf), Chennai (2.3 msf), and Pune (2.5 msf) also posted strong numbers, with Pune and Chennai hitting their highest ever year-to-date figures. This shows even smaller cities are becoming magnets for offices, attracting both Indian and global companies. Leasing activity stayed lively too, with Gross Leasing Volume (GLV) reaching 22.6 msf in Q3, just a slight 2.6% drop from last year. Year-to-date leasing hit 64.2 msf, close to two-thirds of 2024’s record 88 msf. Fresh leasing took center stage, making up 80% of all activity. This means companies are not just renewing but also signing new spaces. Global Capability Centres (GCCs) are stealing the show, making up 32% of leases in Q3 — a rare milestone only hit four times in seven years. Anshul Jain, Chief Executive of Cushman & Wakefield India, SEA & APAC Office and Retail, explains, “Occupiers are making strategic, quality-driven decisions, and India is increasingly being seen as a core market for global operations, not just a cost centre. That’s a structural shift and it’s here to stay.” Looking at industries, IT-BPM stayed the biggest space taker with 31% share in leasing, followed by Engineering & Manufacturing (18%), and BFSI (14%). Flexible workspace operators were also active, grabbing 11% of leasing demand. On the supply front, 14.1 msf of new Grade-A+ office spaces launched in Q3, bringing the total for the year to 37 msf. Bengaluru and Delhi NCR led new completions, showing why they remain favorite hubs for top-quality offices. This strong demand with controlled supply has pushed pan-India vacancy rates down by 53 basis points to 14.81%, a nine-quarter winning streak! Rents are climbing too, with Mumbai and Hyderabad enjoying 15–17% growth, and Ahmedabad, Delhi NCR, and Chennai rising by 6–10% year-on-year. Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield India, sums it up: “Net absorption is often seen as the real demand for space and this quarter’s numbers show that the momentum in India’s office sector is both widespread and sustained. Cities like Delhi NCR, Pune, and Chennai are setting new benchmarks in leasing and absorption. What’s particularly encouraging is the volume of active deals currently in the pipeline, which suggests that this isn’t a one-off spike but part of a deeper, more structural growth cycle.” In short, India’s office real estate market is on fire — full of energy, growth, and huge opportunities!

Read More at Economictimes →

Tags: India office market, Net absorption, Leasing volume, Cushman & wakefield, Real estate growth, City-wise real estate,