November 10, 2025: India’s top six office markets recorded a 26% year-on-year increase in new office space supply during the July–September 2025 quarter, reaching 16.1 million sq ft, according to data from US-based real estate consultancy Vestian. The rise reflects strong demand from both global and domestic firms for premium workspaces.
Pune emerged as the top performer, with new office space supply reaching 3.7 million sq ft, marking a 164% surge from the previous year. Delhi-NCR followed with 3.1 million sq ft, up 35%, while Chennai saw the steepest percentage growth — a 320% jump to 2.1 million sq ft. In Mumbai, new supply doubled to 1.8 million sq ft, underscoring developer confidence in India’s financial hub.
However, Bengaluru, India’s largest office market, registered a 6% decline to 3.4 million sq ft, and Hyderabad saw a 51% drop to 2 million sq ft. Interestingly, Kolkata, the seventh market tracked by Vestian, reported no new supply during the quarter.
Vestian CEO Shrinivas Rao said, “The third quarter of 2025 reported the highest absorption of the current year, primarily driven by GCCs (global capability centres). This robust demand kept the office market buoyant amid global trade uncertainties and geopolitical tensions.” He added that construction momentum had picked up with significant additions across key cities.
“Robust absorption, healthy supply, and a diversified occupier base are expected to drive the next wave of growth in the coming quarters. H-1B visa restrictions may further amplify the demand for offices in India as more and more GCCs expand their footprint in India,” Rao noted.
Overall leasing activity rose 6% to 19.69 million sq ft across seven major cities. Major developers driving this expansion include DLF, Tata Realty, Hiranandani Group, Embassy, Prestige Estates, Sattva Group, and RMZ Group. The country’s four listed REITs — Knowledge Realty Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust — also continue to expand through greenfield and brownfield projects.
Source: Business Standard
