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Office space leasing in Delhi-NCR more than doubled during the April-June quarter, reaching 2.62 million square feet, driven by strong corporate demand in Gurugram and Noida. This contributed to a 10 percent rise in overall office space absorption across India's top seven markets, totaling 18.79 million square feet, according to Vestian's recent report. Southern cities like Bengaluru, Hyderabad, and Chennai led this growth, accounting for 59 percent of the demand. This upward trend is expected to continue as more enterprises return to office operations and new Grade A projects come online in the second half of the year, with total absorption projected to surpass 75 million square feet by year-end.
Office space leasing in Delhi-NCR saw a significant increase, more than doubling to 2.62 million square feet during the April-June quarter. This growth was driven by stronger demand for workspace in Gurugram and Noida from corporate clients. Advertisement
US-based real estate consultant Vestian released its report today, Friday, covering India's top seven office markets. The report showed a 10 percent rise in the absorption, or leasing, of office space across these cities, reaching 18.79 million square feet during the second quarter of the current calendar year.
The consultant attributed this increase in demand primarily to more activity in three southern cities: Bengaluru, Hyderabad, and Chennai. Their combined share of the leasing market rose to 59 percent in the latest June quarter, up from 46 percent in the January-March quarter. As per the data, Bengaluru maintained its top position with leasing of 5.62 million square feet in the recent June quarter, a 32 percent increase from a year ago. In Hyderabad, demand grew 5 percent to 3.56 million square feet, while Chennai saw a 4 percent increase in leasing activities to 1.82 million square feet.
In Delhi-NCR specifically, office space absorption surged 130 percent to 2.62 million square feet in the second quarter of the 2025 calendar year. The Noida market contributed 27 percent to these leasing activities, with Gurugram accounting for the remaining share.
Mumbai's office space leasing was 2 percent higher, at 3.45 million square feet, with Navi Mumbai leading this growth with a 52 percent share. However, Pune experienced a drop of 52 percent, with leasing falling to 1.37 million square feet. Kolkata, a smaller office market, saw a 52 percent growth in leasing to 0.35 million square feet during the April-June period.
Commenting on the demand trend, Shrinivas Rao, CEO of Vestian, stated that as more companies are moving back to in-office operations and several high-quality office projects are planned for completion in the second half of 2025, the growth momentum is expected to continue with an increase in office utilization.
For the first half of 2025, from January to June, the total office space leasing across India's seven major cities stood at 36.75 million square feet. This represents a 21 percent increase from the corresponding period of the preceding year. The consultant projects that overall absorption will surpass 75 million square feet by the end of 2025, indicating a strong outlook for the Indian office market.
Source- PTI
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