Top eight cities report 16.3 million sq. ft. of net office leasing during July-September
- IBEF
- October 1, 2025
India’s office real estate market recorded 16.3 million square feet (msf) of net absorption across the top eight cities in Q3 CY25, a 35% YoY increase, according to Cushman & Wakefield. With 44.3 msf absorbed in the first nine months, the market has already achieved 87% of 2024’s full-year total of 50.7 msf, positioning 2025 to set a new annual record potentially. Delhi NCR (3.8 msf) and Bengaluru (3.5 msf) led the quarter, followed by Pune (2.5 msf), Chennai (2.3 msf), and Mumbai (2.1 msf), with Pune and Chennai recording their highest-ever YTD absorption.
Gross leasing volume stood at 22.6 msf in Q3 2025, slightly down 2.6% YoY, while fresh leasing contributed over 80% of activity. Global Capability Centres accounted for 32% of leasing, with Information Technology and Business Process Management (IT-BPM) leading sectoral demand at 31%, followed by Engineering & Manufacturing (18%) and Banking, Financial Services, and Insurance (BFSI) (14%). New completions of 14.1 msf in Q3, 80% Grade-A+, brought total YTD supply to 37 msf. Strong absorption and controlled supply reduced pan-India vacancy to 14.81%, with rental growth led by Mumbai and Hyderabad (15-17%) and gains of 6-10% in other major cities. Experts highlight that sustained demand, quality-driven leasing, and active deal pipelines signal a structural growth cycle in India’s office market.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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